Chinese Chipmaker SiCarrier Targets $2.8B Funding Amid Huawei Ties and Rising Ambitions

SiCarrier, a state-owned Chinese semiconductor equipment startup backed by Shenzhen, is seeking to raise $2.8 billion in one of the largest yuan-denominated fundraisings of the year. Founded in 2021, the company has gained attention for its aggressive push to become China’s leading chipmaking tool provider, challenging established players like Naura and AMEC.

Closely linked to Huawei, SiCarrier has reportedly spun out from a Huawei semiconductor unit and attracted scrutiny due to concerns that sensitive foundry data might be exposed. Some Chinese chipmakers have hesitated to adopt SiCarrier’s tools over fears of trade secret leakage, although others have bought in to show government support.

The company showcased 30 chipmaking tools at the Semicon China 2025 trade fair, ranging from etching to inspection systems, but many products remain in development and are not yet production-ready. Despite that, SiCarrier’s roadmap is bold. A Reuters patent review revealed plans for a wide portfolio—including wafer measurement devices, deposition systems, and even components for DUV lithography. The company is also exploring AI-based wafer defect detection.

While U.S. sanctions have slowed China’s access to advanced chipmaking technologies, they’ve also fueled local innovation. China has spent $128 billion on semiconductor equipment since 2020, but domestic suppliers still account for only 11.3% of that market, according to TechInsights.

SiCarrier’s ambitions include bypassing restricted EUV tools using multi-patterning techniques, though this method is considered less efficient and prone to errors. Analysts and insiders suggest it could take years for SiCarrier to validate its equipment and gain market trust, particularly if it doesn’t fully distance itself from Huawei.

With strategic backing and aggressive R&D, SiCarrier aims to reshape China’s chipmaking future—but faces steep technological and reputational hurdles ahead.