Virtusa Acquires SmartSoC Solutions, Supplements Cloud Services with Semiconductor Chip Design

Virtusa Corporation, an IT services company specialising in AI, cloud, and data analytics, has acquired Bengaluru-based SmartSoC Solutions, a leader in semiconductor engineering and integrated circuit (IC) design services. 

It marks Virtusa’s expansion into the semiconductor design industry by completing its full-stack, end-to-end service capabilities, spanning the entire digital technology ecosystem from the chip to the network, cloud, and application layer, the company said in a statement.

The deal gives Virtusa full-stack capabilities in silicon design, verification and embedded systems engineering, at a time when demand for advanced silicon is rising sharply due to the growth of AI and large-scale data centres.

Virtusa CEO Nitesh Banga described the acquisition as “transformational,” saying it immediately positions the company as a meaningful player in high-growth semiconductor services. “It completes our vision for a full-stack offering that can serve clients from the foundational silicon layer all the way to the customer application,” he said in the statement. 

Banga added that as AI models become more complex and data centre expansion accelerates globally, in-house chip design capability will be crucial for engineering partners.

SmartSoC, founded in 2016 and headquartered in Bengaluru, is a fast-growing semiconductor engineering and IC design services firm with capabilities across silicon design, verification, and embedded systems.

With this acquisition, Virtusa will onboard more than 1,400 engineers specialised in VLSI, physical design, and embedded software. The deal also significantly expands Virtusa’s India delivery footprint through SmartSoC’s centres in Bengaluru, Hubli, and Hyderabad, including a large tier 2 delivery centre in Hubli that strengthens the company’s cost-effective engineering capacity.

SmartSoC’s leadership team, led by founder and CEO Bharath Desareddy, will stay on and continue managing delivery operations and client engagements. All existing project structures, service contracts and commitments will continue as they are.

Desareddy said the combination creates a “unique market proposition” by bringing together SmartSoC’s specialised semiconductor engineering expertise with Virtusa’s global scale and enterprise client base. “This allows us to accelerate our growth, broaden our services and deliver immediate value to global semiconductor and technology companies,” he added.

The acquisition comes during a period of rapid expansion in the semiconductor and systems engineering market, fuelled by the proliferation of smart devices and soaring investments in AI and edge computing infrastructure. Virtusa’s entry into this segment strengthens its ability to help clients reduce time-to-market for next-generation, power-efficient products and positions the company at the centre of emerging chip innovation.