Huawei-linked SiCarrier reportedly wants $2.8 billion funds to rival ASML

Huawei chip partner – SiCarrier is now reportedly looking for funds worth $2.8 billion. The company is probably requiring this much capital to build more effective chipmaking equipment and compete with foreign chipset producers like ASML.

Reuters noted that Huawei-linked SiCarrier is seeking a $2.8 billion funds in the current scenario. The Chinese firm plans to develop the next-gen chip manufacturing tools and provide the country with an effective ASML equipment alternative.

SiCarrier aims to break ASML’s monopoly in the Chinese AI chip market by building competitive chipmaking equipment. Although the company is still struggling to begin the production of such tools, due to a lack of sufficient funds in the industry.

As a result, SiCarrier – one of the leading chipmakers is now looking forward to raising its capital by around 2.8 billion dollars, said two people familiar with the matter.

The Shenzhen government could play a significant role in this case as it’s considering selling 25% of the SiCarrier unit with a $11 billion (80 billion yuan) valuation.

Huawei AI chip (Image Credits: Huawei/X)

Note that this unit doesn’t account for Lithography assets. Once the firm receives the required amount, it will likely use it towards research, state funds, domestic venture capital, and private equity funds.

Huawei and SiCarrier have not commented on this news yet. Both firms are exploring ways that can help them as well as the withstand the US rules and stricter chip controls in the region and worldwide.

Apart from chipmaking tools, SiCarrier is also looking to invest in AI-driven wafer detection recognition technology that will help in improving the chip yields. Further changes will be known on this matter in the time ahead.

[source]