Tessolve secures $75 mn, lines up acquisitions

BENGALURU: Semiconductor engineering company Tessolve has secured a $75 million investment from US-based Vector Line Capital to support growth and acquisitions. The Hero Electronix company said it is in advanced discussions to close multiple acquisitions over the next two quarters.The proposed deals would add engineering capabilities, expand its services and strengthen its global presence. The announcement did not disclose Tessolve’s valuation or the size of Vector Line’s stake.This is Vector Line’s first investment in India. The semiconductor-focused investment firm joins TPG and Singapore-based Novo Tellus as investors in Tessolve.Founded in 2004, Tessolve provides chip design, validation and testing services. It works on chips used in artificial intelligence and high-performance computing, among other applications. The company said it works with major cloud operators and 18 of the world’s top 20 semiconductor companies.Co-founder and CEO Srini Chinamilli said Tessolve had expanded from silicon test engineering to developing complete chips for companies building AI infrastructure.“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,” he said.Vector Line founder and CEO Geoffrey Baldwin said rising chip complexity was increasing the need for engineering partners that could work across the development cycle.“Semiconductors are becoming extremely complex, making them harder to design, validate and test. Leading technology companies are increasingly turning to engineering partners who can carry work across the whole development cycle,” Baldwin said.Ujjwal Munjal, Tessolve chairman and Hero Electronix founder, said the company was positioned to support the AI ecosystem. “Tessolve has shown that an engineering business built from India can compete and lead globally,” he said.Tessolve employs more than 3,500 engineers across 10 countries and operates nine laboratories globally, according to the company. It said its in-house semiconductor platforms and design processes help shorten development cycles.In India, it is working with new chip foundries, assembly and testing companies, and chip startups across engineering services.You use AI every day. Now get your AI Quotient. Take the AIQ test.