Tessolve, a semiconductor engineering services firm based in India, has raised US$150 million from TPG Growth.

The company plans to use the funds to expand its global delivery centers, upgrade test labs, and pursue acquisitions.

Tessolve, which operates in India, the US, Germany, the UK, Singapore, and Malaysia, employs over 3,000 engineers.

The company reported revenue growth from US$25 million in FY16 to more than US$150 million in FY25.

Singapore-based Novo Tellus Capital Partners, which invested US$40 million in Tessolve in 2021, remains a significant shareholder.

🔗 Source: Tessolve

🧠 Food for thought

1️⃣ India’s decade-long semiconductor policy push is attracting major private capital

Tessolve’s $150 million funding represents the culmination of India’s strategic semiconductor initiatives that began nearly a decade ago.

The Indian government launched comprehensive policies like the Modified Special Incentive Package Scheme (M-SIPS), offering 25% capital expense subsidies, and the Electronics Development Fund worth $2 billion to foster local semiconductor capabilities2.

These early policy foundations created the environment for companies like Tessolve to scale from $25 million in revenue in 2016 to over $150 million by 2025, demonstrating how sustained government support can drive private sector growth1.

The government’s goal to reduce electronics imports, which historically met 75% of India’s $400 billion electronics market demand, has created a compelling investment case for semiconductor services companies2.

Tessolve’s ability to serve 18 of the world’s top 20 semiconductor firms shows how Indian companies have successfully built global-scale engineering capabilities, validating the government’s decade-long efforts to develop local expertise1.

2️⃣ Engineering services companies are benefiting from the global semiconductor market’s rapid expansion

The timing of Tessolve’s funding aligns with significant growth in the global semiconductor market, which is projected to reach $701 billion in 2025 with 11.2% revenue growth3.

This expansion is driven by AI infrastructure buildouts, electric vehicles, and industrial systems, all of which require sophisticated engineering services that companies like Tessolve provide across the semiconductor value chain3.