Accenture buys Bengaluru-based chip design company Excelmax Technologies

The investment signifies that the company is making to build semiconductor capabilities

In its first acquisition in India in the silicon design space, IT consulting and services major Accenture announced the acquisition of Bengaluru-based Excelmax Technologies. The financial details of the acquisition were not disclosed.

The acquisition enhances Accenture’s growing silicon design and engineering capabilities. Excelmax provides custom silicon solutions used in consumer devices, data centres, artificial intelligence (AI), and computational platforms that enable edge AI deployments, to clients in the automotive, telecommunications, and high-tech industries.

The acquisition will bring in 450 strong engineering team of Excelmax joining the global IT player's team. This is the second acquisition in the semiconductor design space by Accenture. In 2022, Accenture announced the acquisition of XtremeEDA, an Ottawa, Canada-based silicon design services company.

Mahesh Zurale, global lead - Advanced Technology Centres Global Network, Accenture, said, “Accenture’s acquisition of Excelmax Technologies brings approximately 450 highly skilled silicon professionals to our Advanced Technology Centres in India. With the global demand for silicon solutions on the rise, India is becoming a hotbed for chip design. Growing our skilled talent in the country across physical and RTL design, verification, emulation, and firmware engineering will help us expand our capabilities in the silicon design space and accelerate innovation for our worldwide clients.”

Founded in 2019, Excelmax brings comprehensive semiconductor solutions from high-level design to detailed physical layout ready for manufacturing, and full turnkey execution. The company adds approximately 450 professionals to Accenture in key areas such as emulation, automotive, physical design, analog, logic design, and verification, expanding Accenture’s ability to help global clients accelerate edge computing innovation.

Growing capabilities inorganically has been Accenture’s strategy. In FY24 (YTD), it acquired 35 companies at a total cost of $5.2 billion. In the past, the company has acquired Indian and India footprint companies.

“With the rapid evolution of new technologies like generative AI and the growth of connected products, more intricate, specialized chips with enhanced performance and efficiency are required,” said Karthik Narain, group chief executive—Technology at Accenture. “Our acquisition of Excelmax enhances our expertise across every aspect of silicon design and development—from concept to production—so we can help our clients fuel innovation and drive growth.”

“Our focus has always been on developing the best talent to deliver tailor-made solutions for our global clients that help them build and maintain competitive advantage,” said Shekhar Patil, founder & CEO, Excelmax Technologies. “Joining Accenture enables us to remain at the forefront of innovation, providing new and exciting opportunities for both our clients and our people.”

The semiconductor market is experiencing a surge in demand for silicon design engineering, driven by the proliferation of data centres and the increasing use of AI and edge computing. This is further propelled by the growing consumer appetite for electronics, which is driving new investments in the chip design space.

The engineering design space, which would be a similar area as Accenture’s acquisition, has seen some of the largest M&A deals by global and Indian IT services players. Recently, Cognizant announced the acquisition of Belcan in a $1.3 billion transaction. Similarly, Infosys acquired Germany-based in-tech for $480 million.