Indian semiconductor engineering company Tessolve has acquired Dream Chip Technologies for $45.8 million.

Tessolve said the all-cash deal would bolster its system-on-chip (SoC) design capabilities in the AI, automotive, and data center markets.

Dream Chip Technologies is a German semiconductor chip design firm that focuses on the development and design of ASICs, SoCs, and field programmable gate arrays (FPGAs).

Founded as Sican in 1990, the company was acquired by Infineon in 2000 and again by Silicon Image in 2006. It underwent a management buyout in 2010, renaming itself Dream Chip Technologies, and, according to the company, became Germany’s largest independent chip design company in 2014.

In a statement, Tessolve said the acquisition would enable it to expand its footprint in Europe, with new locations in Germany and the Netherlands.

“This acquisition solidifies our position as a top-tier semiconductor engineering firm globally with unmatched design-to-productization capabilities,” said Tessolve co-founder and CEO Srini Chinamilli. “Dream Chip’s capabilities further strengthen our ability to take on leading-edge ASIC design projects and greatly enhance our European footprint.”

Dream Chip Technologies CEO Jens Benndorf added: “By combining our design capabilities and IP with Tessolve’s established semiconductor services and embedded solutions, we can offer our customers a truly end-to-end solution from chip architecture to post-silicon test and supply chain management for their most complex designs.”