Tessolve Semiconductor, a company owned by Hero Electronix, has raised $75 million (around Rs 718 crore) in a funding round led by US-based Vector Line Capital. Existing investors TPG and Novo Tellus Capital Partners also participated in the round. 

The company will use the fresh capital to expand its semiconductor engineering capabilities, pursue acquisitions and strengthen its presence in international markets.

The investment marks Vector Line Capital’s first investment in India. The firm focuses on the semiconductor industry and its supply chain. Tessolve is already in advanced discussions to acquire multiple companies over the next two quarters. 

These acquisitions are expected to add new technical capabilities, expand its services and support its global growth plans.

Founded in 2004, Tessolve provides end-to-end semiconductor engineering services. Its offerings cover chip architecture, design, validation, testing and embedded systems. The company also works on chips for artificial intelligence (AI) and high-performance computing (HPC), where demand for advanced processing capabilities continues to grow.

Tessolve uses in-house semiconductor platforms and design processes to shorten development cycles. Its global laboratory network and partnerships with chip foundries, intellectual property providers and testing equipment companies support its work across the chip development process.

The company says it works with 18 of the world’s 20 largest semiconductor companies. It also serves major cloud computing companies, positioning it to benefit from rising demand for AI infrastructure and increasingly complex chips.

The latest funding follows a $150 million investment from TPG in September 2025. With the new capital, Tessolve’s total funding has reached approximately $265 million.

Earlier, in November 2024, the company acquired Germany-based Dream Chip Technologies in a deal valued at around Rs 400 crore. The acquisition strengthened its chip design capabilities and international operations.

Tessolve’s latest fundraising comes amid growing investor interest in India’s semiconductor and deeptech sectors. Government initiatives to develop domestic chip design and manufacturing capabilities have also supported the industry’s growth.

The funding gives Tessolve additional resources to expand through acquisitions and strengthen its position in the global semiconductor engineering market. Its ability to complete planned deals, integrate new businesses and convert growing demand into revenue will be key to its next phase of growth.

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