Tessolve Secures $75 Million for Semiconductor Capacity Expansion

Hero Electronix-owned Tessolve Semiconductor has secured $75 million (₹718 Cr) in a funding round led by Vector Line Capital, with participation from existing backers TPG and Novo Tellus Capital Partners. The investment aims to bolster the company's semiconductor engineering services.

The newly acquired capital is earmarked for strategic acquisitions that are expected to complement existing capabilities and broaden Tessolve's service portfolio. The company is also looking to strengthen its international business operations. Tessolve is reportedly in advanced discussions for multiple acquisitions to be finalized in the coming quarters. Most recently, the company acquired Germany's Dream Chip Technologies GmbH (DCT) in November 2024 for approximately ₹400 Cr.

"This investment will support acquisitions that further strengthen our offerings, and Vector Line’s focus on the sector and their relationships will add significant value," said Srini Chinamilli, co-founder and CEO of Tessolve. The company provides end-to-end semiconductor engineering services, including chip architecture, design, validation, testing, and embedded systems.

Tessolve designs AI and HPC chips by utilizing its in-house semiconductor platforms and design flows to reduce development cycles. The company claims to have collaborated with leading hyperscalers and 18 of the world's top 20 semiconductor firms. With this latest funding, Tessolve's cumulative funding reaches $265 million.

The funding comes amid growing investor interest in India's deeptech sector, particularly in semiconductor and chip design startups. This trend is supported by government initiatives like the India Semiconductor Mission 2.0, aimed at developing the nation's chip design and manufacturing ecosystem.