Bengaluru’s Tessolve Semiconductor Secures $75 Mn From Vector Line Capital

Bengaluru-based Tessolve Semiconductor, a Hero Electronix company, has secured $75 million from US-based Vector Line Capital to expand its semiconductor engineering business. This marks Vector Line Capital’s first investment in India, as the company focuses exclusively on semiconductors and the global semiconductor supply chain.

The investment will support Tessolve’s growth, including strategic acquisitions to expand its services and strengthen its global presence. The company is already in advanced discussions to close multiple acquisitions over the next two quarters. 

Existing investors TPG and Novo Tellus will be joined by Vector Line Capital.

“Two decades ago we started with silicon test engineering. Today we are designing and productising complete chips for the companies building AI infrastructure,” Srini Chinamilli, Co-founder and CEO of Tessolve, said in a statement.

He said the company had invested in capabilities, platforms, and talent ahead of rising demand. The latest funding will support acquisitions that strengthen its service offerings.

The investment comes as Tessolve seeks to expand its capabilities and service portfolio through acquisitions. The company aims to strengthen its position across the semiconductor value chain as demand for AI infrastructure grows.

Founded in 2004, Tessolve provides semiconductor engineering services spanning chip architecture, design, validation, testing, and embedded systems. The company develops chips for AI, high-performance computing (HPC), and analogue and mixed-signal applications. It also works with hyperscalers and semiconductor companies.

Tessolve employs more than 3,500 engineers across 10 countries and operates nine laboratories globally. Its capabilities cover the semiconductor development cycle, from chip architecture and design to validation, testing, and embedded systems.

Vector Line Capital Founder and CEO Geoffrey Baldwin said semiconductor complexity was driving technology companies to seek engineering partners across the development cycle. “Tessolve is among the few companies that can do this at scale across the semiconductor value chain, globally,” he said.

The company also works with semiconductor startups, foundries, and outsourced semiconductor assembly and test (OSAT) providers in India. It uses pre-engineered semiconductor platforms and design flows to shorten development cycles. 

Ujjwal Munjal, Chairman of Tessolve and Founder of Hero Electronix, said the company had demonstrated that an engineering business built in India could compete globally, with its semiconductor design capabilities poised to support the AI ecosystem.

Vector Line Capital manages more than $1.6 billion in capital and invests across the semiconductor industry. Baldwin previously co-founded GCA Advisors and held senior roles in technology investment banking, including at Morgan Stanley and Houlihan Lokey.