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.

🔗 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.