Cathay Venture invests in French AI chip startup SiPearl's massive funding round

In a significant move for the European semiconductor industry, Cathay Venture, the investment arm of Taiwan's Cathay Financial, has engaged in a funding round for SiPearl, a French AI chip startup, contributing to the company’s €130 million ($152 million) Series A financing. This funding event marks a pivotal moment as it represents the largest Series A round in Europe’s fabless semiconductor sector, reflecting the growing importance of AI and advanced computing technologies in the region. Several notable investors participated alongside Cathay Venture, including SoftBank-owned Arm, indicating a robust global interest in semiconductor innovation. Founded in 2019, SiPearl, under the leadership of CEO Philippe Notton, aims to address the escalating demand for computing power and energy efficiency in modern data centers with its Rhea1 chip. Notton emphasized that this chip is a significant step for Europe, describing it as the most complex processor ever designed on the continent. The Rhea1 chip, which is based on Arm architecture, has ambitious applications in areas such as supercomputing, significantly contributing to projects like the government-funded Jupiter supercomputer in Germany. This supercomputer is expected to facilitate advanced research in engineering and materials science, as well as sophisticated studies in fields such as dark matter. Cathay Venture's investment occurs at a time when there is an increasing need for Europe to develop strong and independent partners in the global semiconductor ecosystem. Stanley Yu, assistant vice president at Cathay Venture, identified SiPearl as a crucial player in the semiconductor design space. He noted that the company addresses critical challenges associated with both the computing power and energy efficiency that are increasingly necessary for modern data centers. With more than one-fourth of its portfolio in the semiconductor and electronics sector, Cathay Venture aims to support innovative companies that can provide competitive alternatives in a crowded and rapidly growing market. Moreover, SiPearl's project aligns with efforts to enhance Europe’s technological autonomy in semiconductor manufacturing and design. This collaboration between Taiwan and France illustrates the global nature of the semiconductor industry, where partnerships across borders are essential for innovation and technological advancement. By securing this investment, SiPearl is not only positioning itself as a formidable competitor against established leaders but also contributing to shaping Europe’s role in the global semiconductor landscape, reflecting a broader trend towards bolstering local capacities in response to significant global demand.