A $75 million investment from Vector Line Capital, a US-based fund, has been directed toward Tessolve Semiconductor — the Hero Electronix-owned engineering firm — to finance a growth push that encompasses targeted acquisitions intended to broaden its semiconductor capabilities and extend its footprint across international markets. Talks described as being at an advanced stage are underway, with the firm targeting the closure of several deals across the coming two quarters.
Viewed collectively, the planned deals are expected to extend the organisation's reach, folding in new service offerings and pushing its presence deeper into international markets. For Vector Line Capital, the transaction represents its debut deployment of capital into the Indian market.
The semiconductor-focused investment firm joins Tessolve's existing backers TPG and Singapore-headquartered Novo Tellus, with the fund's mandate covering both chip manufacturing and the broader supply chain that supports it. No details about the firm's post-investment valuation or the portion of ownership Vector Line Capital acquired were made available by the company.
Established two decades into the twenty-first century, Tessolve delivers engineering services across the semiconductor space, with capabilities spanning chip architecture and design, validation and testing, and embedded systems work. Srini Chinamilli, who co-founded the business and serves as its chief executive, oversees a portfolio of chips spanning artificial intelligence, high-performance computing, automotive systems, data centres, and industrial use cases.
Among its functions, the platform handles end-to-end chip architecture work spanning AI processors, high-performance computing units, and both analog and mixed-signal circuit types. Among its stated client relationships, the firm counts 18 of the 20 highest-ranked semiconductor companies globally, alongside hyperscalers, chip-focused startups, and broader systems businesses.
With a workforce of more than 3,500 engineers spread across ten countries, the organisation also runs nine research and development laboratories at sites around the world. Relationships with semiconductor foundries, IP providers, EDA companies, and test equipment manufacturers round out its broader network of industry collaborations. Proprietary semiconductor platforms and accelerated design workflows are what the company points to when explaining how it brings chips from concept to completion faster.
Tessolve co-founder and CEO Srini Chinamilli described a trajectory in which the company moved beyond silicon test engineering into the full design and development of chips for businesses building out AI infrastructure, adding that the Vector Line funding would back acquisitions to broaden those capabilities, with the investor's sector focus and existing relationships expected to bring added value to the partnership.
Baldwin, who leads Vector Line Capital as both its founder and chief executive, noted that chip architectures had grown so intricate that demand was rising for engineering partners able to provide support at multiple points along the development pipeline — from initial design through validation and into testing. Baldwin also noted that firms at the forefront of the technology sector are shifting their procurement approach toward engineering partners capable of handling a project from initial concept through to final delivery.
Tessolve chairman Ujjwal Munjal, who also founded Hero Electronix, attributed the company's expansion to a broader capacity among engineering firms operating out of India to hold their own on the world stage, adding that Tessolve had demonstrated such businesses could take a leading position internationally.
That capital injection builds on a $150 million round that TPG, the global investment firm, put into the company in September 2025. A $40 million stake in Tessolve was taken up by Novo Tellus Capital Partners, the Singapore-headquartered investment firm, when that funding round closed in 2021.
A deal struck in November 2024 brought Dream Chip Technologies — a chip design firm headquartered in Germany — under Tessolve's ownership at a price of roughly Rs 400 crore. Across various stages of the semiconductor development pipeline, the company extends engineering assistance to nascent chip ventures, OSAT firms, and fledgling foundries operating within India.
Chip manufacturing, assembly, testing, and design have all drawn investment as part of a broader push to build out a homegrown semiconductor sector, a drive that forms the backdrop to the latest round of expansion.
