French chipmaker SiPearl secures $152m series A

French chipmaker SiPearl secures $152m series A

Tech in Asia·2025-07-09 13:01

French chipmaker SiPearl has raised €130 million (US$152 million) in a series A funding round, with notable support from Taiwan’s Cathay Venture.

This funding is part of Europe’s efforts to achieve technological sovereignty.

The company will use the funds for research, development, and the industrialization of its Rhea1 chip.

This processor includes 80 cores from Arm Holdings and over 61 billion transistors.

SiPearl has partnered with Taiwan Semiconductor Manufacturing Company (TSMC) for the chip’s production.

The Rhea1 chip will power Jupiter, an EU-supported supercomputer in Germany.

This machine is intended for applications in medical research, energy management, and defense.

Founded in 2019, SiPearl is part of the European Processor Initiative and operates across France, Spain, and Italy.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Europe’s semiconductor strategy faces an uphill battle despite ambitious targets

SiPearl’s €130 million funding represents a key piece in Europe’s broader semiconductor sovereignty strategy, which aims to increase the region’s global market share from 10% to 20% by 2030.

The European Commission has mobilized over €43 billion through the EU Chips Act to stimulate the semiconductor industry, reflecting the urgent priority placed on reducing dependency on foreign suppliers 1.

This push comes as Europe’s semiconductor position has weakened recently, with March 2025 sales showing a 2.0% year-over-year decline while other regions grew significantly: Americas (45.3%), Asia Pacific (15.4%), and China (7.6%) 2.

The automotive sector drives 37% of Europe’s semiconductor demand, making the region particularly vulnerable to supply chain disruptions like those experienced during the COVID-19 pandemic 3.

While nine EU member states have formed a Semiconductor Coalition to enhance cooperation, Europe still faces significant challenges in competing with Asia’s manufacturing scale and the massive investments flowing into U.S. semiconductor production 4.

2️⃣ High-performance computing emerges as Europe’s strategic semiconductor niche

SiPearl’s focus on high-performance, energy-efficient processors for AI and supercomputing aligns with Europe’s recognized strengths in specialized semiconductor applications rather than mass-market consumer chips.

The European Processor Initiative (EPI), which seed-funded SiPearl in 2019, specifically targets the development of low-power European processors for high-performance computing and big data—critical applications for Europe’s technological sovereignty 5.

Europe excels in the design and production of “More than Moore” components such as sensors and microcontrollers, which serve specialized industrial and automotive applications rather than competing directly with Asia’s dominance in high-volume consumer electronics chips 6.

The company’s Rhea1 chip, featuring 80 cores and over 61 billion transistors, represents the kind of specialized, high-value processor that could give Europe competitive advantage in specific market segments rather than attempting to match Taiwan or South Korea in mass production.

This specialized focus makes strategic sense as generative AI chips alone are expected to generate over $150 billion in global sales in 2025, creating opportunities for focused players even as the overall semiconductor market reaches $697 billion 7.

3️⃣ Taiwan-Europe semiconductor collaboration signals evolving global supply chains

Cathay Venture’s investment in SiPearl marks the Taiwanese private equity firm’s first French investment, reflecting a noteworthy development in cross-regional semiconductor cooperation.

This Taiwan-Europe connection is particularly significant as TSMC (Taiwan Semiconductor Manufacturing Company) has been appointed to manufacture SiPearl’s Rhea1 chip, demonstrating how even Europe’s push for technological sovereignty relies on strategic partnerships with Asian manufacturing leaders.

The collaboration highlights a practical approach to semiconductor sovereignty that doesn’t require complete self-sufficiency but rather strategic positioning within global supply chains, especially since both the U.S. and EU lack the capability to manufacture cutting-edge semiconductors (2-3 nm nodes) at scale 8.

Taiwan’s involvement aligns with broader industry trends, as TSMC plans to invest $100 billion in production capacity expansion over four years, though much of this is directed toward U.S. facilities rather than Europe 6.

This investment pattern represents the pragmatic reality that building a complete semiconductor ecosystem requires both regional coordination (like Europe’s Semiconductor Coalition) and international partnerships that leverage existing manufacturing expertise 4.

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