How to support Europe’s technological sovereignty

“Semiconductors are devices at the heart of today’s technological megatrends, including AI adoption, data center expansion, and vehicle electrification. These shifts are creating significant opportunities for small and midcap providers within Europe’s rich ecosystem of expertise. Launched in late 2023, Ardian Semiconductor strategy is Europe’s first private equity strategy dedicated to this key market, set to grow to $1 trillion by 2030. This exclusive strategic partnership combines Ardian’s investment expertise with Silian Partners’ deep industry knowledge. Together, we form a unique hybrid team, managing every stage of investment from sourcing to exit, embedding analysis, due diligence and operational expertise at the core of our approach. The ambition? To scale emerging semiconductor players into global champions, while contributing to the revitalization of the wider European semiconductor value chain. This ambition was reinforced in May 2024 when Qatar Investment Authority announced its intent to anchor an investment commitment in the fund, reflecting a shared goal of advancing innovations in the semiconductor industry.

In this context, Ardian made two acquisitions: Ion Beam Services (IBS), an innovative semiconductor equipment and services company in high-growth specialty segments, and Synergie Cad Group, a leading provider of semiconductor test interface solutions. Thanks to our networks, we had known both for a long time. When management transitions created an opening, Ardian's strategy moved quickly to secure exclusivity. In a sector in which Europe’s technological sovereignty is at stake, working with a European buyer is often a decisive factor for founder-owned businesses – giving the fund a key advantage in securing the right opportunities.” 
 

Roadmap to growth in Europe’s semiconductor market

To help navigate a complex market, Lise Fauconnier, Senior Managing Director in the Buyout team at Ardian, and Christophe Duverne, Partner and Co-Founder of Silian Partners, offer a toolkit for investing in the semiconductor space.

Semiconductors rely on a deeply interconnected ecosystem, where every player depends on another. “You can’t produce a semiconductor machine in Taiwan without lithography machines from Europe,” says Lise Fauconnier, Senior Managing Director in the Buyout team at Ardian. Factor in production complexity and geopolitical stakes, and it’s a challenging market to navigate.

The Ardian Semiconductor strategy

An effective investment strategy, says Fauconnier, requires a top-down analysis. It begins with a broad assessment of the landscape and megatrends, while factoring in macro risks.
The focus then shifts to identifying companies with the potential to scale – smaller firms with €50-400 million in revenue that have strong growth potential but limited financial resources. The fund seeks businesses where it is possible to expand the “serviceable market” – the portion of the market they can realistically reach. “That’s the space where the company can truly compete,” says Fauconnier. 
 

To succeed, these companies need unique technology or niche expertise, but in this interdependent ecosystem, strong client relationships are just as critical. Semiconductors are traditionally a highly cyclical industry, with significant year-to-year revenue fluctuations. However, in the mid to long term, the team sees this factor as less pronounced. If you identify the right market drivers and put real effort into transforming these companies, you can more than offset cyclical risk,” adds Christophe Duverne, Partner and Co-Founder of Silian Partners.

Transforming operations

Value creation comes from operational improvements. At entry, Silian Partners works closely with incoming CEOs to shape the company’s roadmap and optimize processes. “A key challenge for many companies,” says Duverne, “is in not trying to do too much at once, but in staying focused on a clear strategy and disciplined execution.” Optimizing manufacturing and procurement follows. In equipment manufacturing, for example, selecting the right suppliers and designing flexible sub-assembly modules is critical. 
Then comes go-to-market strategy: should the company focus on core strengths or invest more in R&D and diversify its offering? With Synergie Cad, for example, the team is working to expand the customer base beyond Europe. The fund moves fast, launching a 100-day plan. In one case, the team anticipates 50% revenue growth next year – a rapid transformation. “That requires enormous change in the way they operate,” says Duverne. Lasting change, however, takes time, and the team works on a horizon of at least three to five years to fundamentally shift the company’s trajectory.

Tailored support for portfolio companies

Ardian Semiconductor offers its portfolio companies cross-functional support, from IT transformation to ESG initiatives. As Fauconnier notes, ESG in semiconductors has both direct and indirect dimensions. Companies work to reduce their direct environmental footprint, but their role in the energy transition -  powering electric vehicles and AI efficiency – is just as crucial. An advantage of the Ardian Semiconductor’s hybrid expertise is that it can share specialist best practices across the portfolio, enhancing support. “It’s really the core component of what we do – the heart of the machine,” says Fauconnier. Paying tribute to the collaborative approach created with Silian Partners, she says it is “without equivalent.” With two acquisitions completed, the fund plans up to eight more, seeing a rich pipeline in Europe’s untapped potential. “From the start, we knew this market held many underdeveloped players,” Duverne reflects. “Two years in, everything we’ve seen has only strengthened that view.”