Tessolve Semiconductor, a Hero Electronix company, has secured a $75 million funding from US-based Vector Line Capital to support its expansion plans, including strategic acquisitions aimed at strengthening its semiconductor engineering capabilities and global operations.
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The company said it is in advanced discussions to complete multiple acquisitions over the next two quarters. The proposed deals are expected to complement its existing capabilities, broaden its services and expand its international presence.
The investment marks Vector Line Capital’s first investment in India. The firm, which focuses exclusively on semiconductors and the semiconductor supply chain, joins TPG and Singapore-based Novo Tellus as investors in Tessolve.
The company has not disclosed its valuation following the investment or the size of the stake acquired by Vector Line Capital.
What does Tessolve Semiconductor do?
Founded in 2004, Tessolve provides semiconductor engineering services covering chip architecture, design, validation, testing and embedded systems.
The company, led by co-founder and CEO Srini Chinamilli, develops chips used in AI, high-performance computing (HPC), automotive, data centres and industrial applications.
Its capabilities include the design of complete semiconductor chips, including AI, HPC, and analog and mixed-signal chips.
Tessolve said it works with leading hyperscalers, chip startups, system companies and 18 of the world’s top 20 semiconductor companies.
The company employs more than 3,500 engineers across 10 countries and operates nine laboratories globally. It also partners with semiconductor foundries, intellectual property (IP) providers, electronic design automation (EDA) companies and test equipment manufacturers.
Tessolve said it uses in-house semiconductor platforms and design processes to shorten chip development cycles.
What did the company and investors say?
Tessolve co-founder and CEO Srini Chinamilli said the company had evolved from offering silicon test engineering services to designing and developing complete chips for businesses 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 Capital founder and CEO Geoffrey Baldwin said increasing semiconductor complexity was creating demand for engineering partners capable of supporting different stages of chip development.
“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, chairman of Tessolve and founder of Hero Electronix, said the company’s growth reflected the ability of India-based engineering businesses to compete internationally.
“Tessolve has shown that an engineering business built from India can compete and lead globally,” he said.
Tessolve’s previous funding and expansion in India
The latest investment follows a $150 million funding round from global investment firm TPG in September 2025. Earlier, Singapore-based Novo Tellus Capital Partners invested $40 million in Tessolve in 2021.
Tessolve has also expanded through acquisitions. In November 2024, it acquired Germany-based chip design company Dream Chip Technologies for about Rs 400 crore.
In India, the company is working with emerging semiconductor foundries, outsourced semiconductor assembly and testing (OSAT) companies, and chip startups, providing engineering support across different stages of semiconductor development.
The expansion comes as India seeks to strengthen its domestic semiconductor industry, with investments in chip manufacturing, assembly, testing and design.
