Chinese SiC materials maker Liufang raises $15M Series C

What's the deal? Zhejiang Liufang Semiconductor Technology has raised US$13.8M (roughly $15 million) in a Series C round. Beijing Canglin Capital and Zhuji Industrial Investment Group co-led the financing.

What does the company do? Founded in 2018, Liufang develops and produces semiconductor materials across the crystal-growth, epitaxy, and etching stages of the chip supply chain. Its core technology is the synthesis of CVD-SiC silicon carbide, which it uses to make focus rings, epitaxy trays, and related precision components.

What's the money for? The company will spend the round on new-product research and capacity. A new plant covering roughly 6.7 hectares is due to begin production in December 2026.

Why now? Demand for CVD-SiC parts is rising as 3D NAND scales past 300 layers and AI chip expansion drives more etching equipment. Liufang says domestic production covers less than 15% of CVD-SiC focus rings in China, and under 5% for the focus rings used in sub-7nm processes — leaving room for local suppliers.

What's the endgame? The company says its high-purity SiC powder matches overseas products and is being introduced to major domestic crystal-growth firms. Founder He Shaolong, who leads a national research programme on large-size ultra-high-purity silicon carbide, says next-stage research targets SiC applications in optics and chip cooling.

What could go wrong? The round targets upstream materials and process consumables rather than power-device capacity — a narrower bet. China's rapidly built 6-inch substrate capacity already faces oversupply and price pressure, shifting competition toward cost, performance, and customer validation. Liufang's claims on overseas benchmarks and customer adoption still need operating data to confirm.

The signal: SiC funding continues, but the focus is moving from headline amounts to whether companies can turn early customer interest into stable volume production. Backers frame domestic materials and process parts as foundational to China's push for a self-reliant chip supply chain. Canglin Capital called such components "the core cornerstone" of that effort.

Read more: 36kr.com

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