Tessolve, a semiconductor engineering and services company backed by Hero Electronix, has secured a $150 million investment from global private equity firm TPG. The deal, announced this week, positions Tessolve to accelerate its expansion in semiconductor design, testing, and embedded systems as demand for advanced chips intensifies worldwide.
The funding marks one of the largest private equity bets in India’s semiconductor sector, reflecting growing investor appetite amid global supply chain realignments and a surge in demand for artificial intelligence (AI), automotive, and high-performance computing chips.
Founded in 2004 and headquartered in Bengaluru, Tessolve offers chip design, validation, testing, and embedded software development for global clients across industries. With a workforce of over 4,000 engineers, the company operates design and test labs in India, the United States, Europe, Malaysia, and Singapore. Its end-to-end services—from silicon design to system integration—make it a crucial partner for semiconductor giants navigating rising complexity in chip engineering.
The infusion of capital from TPG will enable Tessolve to pursue both organic and inorganic growth. The company plans to deepen its investments in research and development, expand its global delivery centers, and pursue acquisitions to broaden its service portfolio. Hero Electronix, a subsidiary of the Hero Group and Tessolve’s parent, has also signaled ambitions to scale Tessolve into a billion-dollar enterprise in the coming years.
TPG’s investment underscores a broader trend of capital flowing into India’s semiconductor ecosystem. The Indian government has launched a $10 billion incentive program to promote chip manufacturing and design capabilities in the country, with an eye toward reducing reliance on imports and strengthening supply chain resilience. Tessolve, which has long served global chipmakers, is well positioned to benefit from this policy push while extending its global footprint.
Pradip Dutta, Executive Chairman of Tessolve, said the investment validates the company’s strong execution capabilities and trusted client relationships. “We are entering a new era of semiconductor innovation, with AI, automotive, and consumer electronics driving unprecedented demand. TPG’s partnership will help us scale faster and address these opportunities globally,” he said.
TPG, which manages more than $224 billion in assets, has a track record of backing technology and engineering companies worldwide. The firm’s Asia investments have included leading positions in consumer tech, healthcare, and financial services, and it now views semiconductors as a strategic sector aligned with long-term global growth.
For India, where the semiconductor industry remains largely dependent on imports, Tessolve’s trajectory offers a glimpse into how local players can capture value in high-end design and services rather than wafer fabrication alone. Analysts say that by building scale in engineering and testing, Tessolve could help bridge a critical gap in the global semiconductor supply chain while positioning India as a competitive hub.
The transaction is subject to customary approvals, and financial details beyond the investment size were not disclosed. However, industry experts estimate that with this capital boost, Tessolve could be on track to achieve its $1 billion valuation target sooner than anticipated, further cementing its place in the global semiconductor services arena.
