SiCarrier, Huawei’s Chipmaking Partner, Aims for $2.8 Billion Funding to Compete with ASML; Production of Most Products Still Pending

Recent reports indicate that SiCarrier, a rising player in the semiconductor industry, is in talks to secure significant funding aimed at developing next-generation chip manufacturing technologies in collaboration with Huawei. This initiative is expected to enhance the region’s ability to compete against the leading firm ASML, while also striving to reduce reliance on foreign entities. However, achieving these ambitious goals requires substantial financial investment. To catalyze its journey towards innovation, SiCarrier is seeking a massive $2.8 billion in funding.

Strategic Funding for Innovative Research

At the recent SEMICON event, SiCarrier showcased a range of advanced chipmaking equipment designed to challenge ASML’s dominance in the semiconductor sector and potentially provide China with a competitive advantage. Despite the impressive rollout of these technologies, reports from Reuters highlight that many of SiCarrier’s new products are still in the pipeline and have yet to enter production. This bottleneck underscores the urgency behind the company’s capital-raising efforts, as insiders claim it is aiming to secure the aforementioned $2.8 billion, while positioning its valuation at approximately $11 billion.

The fundraising initiative is expected to wrap up in the coming weeks, attracting attention from various domestic venture capital firms eager to invest in SiCarrier’s promising future. Interestingly, the financial requirements outlined in this initiative do not encompass the chipmaker’s lithography technologies—yet, given the industry’s focus on innovation, potential investors may be keenly interested in these assets. Ultimately, the overarching goal for China, particularly for Huawei, is to transition away from traditional DUV equipment. Instead, the emphasis is on developing cutting-edge EUV machinery to enable manufacturers to go beyond the current 7nm technology threshold.

As it stands, SMIC, China’s largest semiconductor contract manufacturer, is constrained to mass-producing 7nm wafers. The leap to 5nm technology remains challenging due to the need for multiple patterning steps, which can inflate costs and undermine production yields. While SMIC has reportedly made strides in developing its 5nm node, mass production of wafers using this advanced lithography is still not on the horizon. Furthermore, there were discussions regarding China’s plans to create in-house EUV machines, projected to begin trial production by Q3 2025. However, the lack of updates on this front raises concerns about the viability of China’s semiconductor ambitions, which could hinge significantly on the success of SiCarrier’s ventures.

Source: Reuters

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