huawei-linked sicarrier challenges asml dominance in china's chip market
taipei, Monday, 24 March 2025.
Amidst escalating us export restrictions, china’s sicarrier, backed by the shenzhen government and linked to huawei, is developing semiconductor manufacturing equipment to rival asml. sicarrier aims to replace machines for lithography, chemical vapor deposition and other critical processes. this move could significantly alter asml’s market share and revenue streams in china. the development highlights china’s push for self-sufficiency in chip manufacturing. sicarrier is working closely with huawei’s chip production specialists.
potential asml stock impact
SiCarrier’s emergence as a competitor could pressure ASML’s stock (ASML:AMS) [1]. The development of domestic alternatives in China may affect ASML’s order book, particularly from Chinese clients [1]. ASML’s technological leadership, especially in lithography, faces a challenge if SiCarrier successfully develops competitive machines [1]. Market analysts will closely monitor SiCarrier’s progress and its potential impact on ASML’s future revenue streams and market valuation [1].
china’s semiconductor ambitions
China is actively pursuing self-reliance in semiconductor technology amid increasing trade tensions with the us [1][4]. This includes investments in domestic chip production and equipment manufacturing [4]. Ant Group is already utilizing Chinese-made semiconductors, including those from Huawei, to develop AI models, achieving cost reductions of approximately 20% [4]. These efforts are designed to mitigate the impact of us export controls and promote indigenous innovation within the chinese tech sector [1][4].
us responses and market dynamics
In response to China’s growing capabilities, the US Commerce Department recently announced new tariffs on Chinese semiconductors, citing national security concerns [4]. The US is also pressuring countries like Malaysia to enhance monitoring of Nvidia AI chip flows to prevent their diversion to China [4]. Simultaneously, the US FCC is investigating several Chinese tech firms, including Huawei, for potentially circumventing operational restrictions in the United States [6]. These actions highlight the escalating competition and regulatory scrutiny in the global semiconductor market [4][6].
broader tech landscape in china
China’s tech sector is witnessing rapid advancements across various fields. BYD launched an EV to compete with Tesla’s top-selling model [7]. Chinese cloud software provider Kingdee is leveraging DeepSeek’s AI models [7]. Unitree is focusing on industrial applications for its humanoid robots [7]. These developments indicate a dynamic and innovative environment, despite challenges posed by international trade and technological restrictions [7]. The focus on AI and advanced manufacturing underscores China’s ambition to become a global technology leader [4][7].