SiCarrier, a Chinese semiconductor equipment startup backed by the Shenzhen municipal government, is seeking to raise US$2.8 billion in its first funding round, targeting a valuation of around US$11 billion. Founded in 2021 and closely linked to Huawei, the firm has emerged as a key player in China's national drive for chipmaking self-sufficiency.
The deal, expected to conclude within weeks, would see roughly 25% of a SiCarrier subsidiary sold to investors including state-backed enterprises, sovereign funds, and domestic VC and PE firms, according to Reuters and Aastocks. The unit excludes SiCarrier's lithography business, and its name has not been disclosed.
Poised to lead domestic chipmaking equipment
SiCarrier has quickly risen to prominence in China's semiconductor sector with ambitions to outpace established local rivals such as Naura Technology and AMEC, according to industry sources familiar with the company's strategic goals.
The company aims to become an all-in-one provider of chipmaking tools—from wafer etchers and deposition systems to AI-driven defect inspection—positioning itself as a future rival to global leaders like Lam Research, Tokyo Electron (TEL), and KLA-Tencor.
A Reuters review of 92 patents filed between October 2022 and March 2025 shows SiCarrier's technology ambitions outstrip those of its Chinese peers. The filings, confirmed via Anaqua's AcclaimIP database, span wafer metrology, thin-film deposition, and plasma etching systems.
SiCarrier made a splash at SEMICON China in March with a 30-item equipment catalog. Though its lithography machines were absent, the display featured inspection systems named after Chinese mountain ranges.
Analysts at Bernstein warned it is "nearly impossible" for such a young firm to commercialize highly complex chip tools without rigorous testing and validation. Most of SiCarrier's offerings remain in development, according to industry sources.
Semiconductor tools typically require prolonged qualification cycles, casting further doubt on the near-term viability of SiCarrier's product line.
Responding to geopolitical pressures
SiCarrier's rise underscores a broader geopolitical shift. As FX168 noted, US export controls introduced since 2020 have restricted China's access to advanced chip tools, accelerating efforts to localize production capabilities.
According to TechInsights, domestically produced wafer fabrication tools made up just 11.3% of China's total equipment purchases last year, despite US$128 billion in cumulative spending on such imports since US sanctions began.
SiCarrier was placed on the US export control list in late 2024 over its reported links to Huawei. The company declined to comment on the matter. Huawei has publicly denied any affiliation with SiCarrier. The Shenzhen city government also did not respond to inquiries.
Concerns over cybersecurity and IP risks have reportedly made some potential clients wary of SiCarrier's perceived association with Huawei.
If finalized, the US$2.8 billion raise would rank among China's largest yuan-denominated fundraisings in 2025, positioning SiCarrier as an emerging—if still untested—force in the country's chip equipment sector.
Article edited by Jerry Chen
