Tessolve designs AI and HPC chips using in-house, pre-engineered semiconductor platforms and design flows intended to shorten development cycles
Tessolve Semiconductor has secured a $75 million investment from US-based Vector Line Capital, marking the investment firm’s first investment in India. The funding will support Tessolve’s growth, strategic acquisitions and expansion of its semiconductor engineering capabilities and global presence.
Tessolve provides end-to-end semiconductor engineering services, spanning chip architecture, design, validation, testing and embedded systems. The company develops chips for artificial intelligence (AI), high-performance computing (HPC) and analog/mixed-signal applications. It works with leading hyperscalers and 18 of the world’s top 20 semiconductor companies.
The investment comes as demand for semiconductor engineering services grows alongside increasing chip complexity, particularly in AI infrastructure. Tessolve plans to use the funding to pursue acquisitions that complement its existing capabilities, expand its service portfolio and strengthen its global footprint. The company is already in advanced discussions to close multiple acquisitions over the next couple of quarters.
“Two decades ago we started with silicon test engineering. Today we are designing and productizing complete chips for the companies building AI infrastructure,” said Srini Chinamilli, Co-founder and CEO, Tessolve. He added that the investment would support acquisitions to strengthen the company’s offerings, while Vector Line’s sector focus and industry relationships would bring additional value.
Founded by Geoffrey Baldwin, Vector Line Capital focuses exclusively on investments in semiconductors and the semiconductor supply chain. Before establishing the firm, Baldwin spent more than three decades in technology investment banking and advised on mergers and acquisitions (M&A) across the global semiconductor industry. He co-founded GCA Advisors, which was later acquired by Houlihan Lokey, where he served as Co-Chairman of the Global Technology Group. He previously worked in Morgan Stanley’s technology M&A practice.
“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,” said Baldwin, Founder and CEO, Vector Line Capital. He noted that Tessolve’s capabilities across the semiconductor value chain and its established customer base position it to serve global technology companies.
Ujjwal Munjal, Chairman of Tessolve and Founder of Hero Electronix, said the investment recognises the ability of an engineering company built in India to compete globally. He added that Tessolve’s semiconductor design capabilities position it to support the growing AI ecosystem. Hero Electronix, along with its partners TPG and Novo Tellus, welcomed Vector Line as an investor.
Tessolve designs AI and HPC chips using in-house, pre-engineered semiconductor platforms and design flows intended to shorten development cycles. Its capabilities are supported by global laboratory infrastructure and partnerships with foundries, intellectual property (IP) providers, electronic design automation (EDA) companies and test equipment manufacturers.
The company is also working with emerging Indian foundries, outsourced semiconductor assembly and test (OSAT) providers, and chip startups, supporting their development across the semiconductor engineering value chain.
