China's National Integrated Circuit Industry Investment Fund (commonly known as the "Big Fund I") is accelerating its divestment from semiconductor companies, planning to sell over ¥3.12 billion ($438 million) in shares from two leading chip firms this week.
The fund announced plans to divest from:
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Piotech (688072.SH): Selling up to 3% stake via block trades
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Yandong Micro (688172.SH): Third round of divestment this year, reducing 1.5% stake
This represents a systematic capital recycling strategy, as Big Fund I has been exiting mature investments across the semiconductor supply chain throughout 2025. Notable previous divestments include:
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NAURA Technology Group: Generated ¥5.5 billion returns from initial ¥1.511 billion investment
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Tongfu Microelectron: Completed substantial stake reduction
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Shengke Communication: Sold 10.19 million shares for ¥1.265 billion
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Huada Jiutian: Completed ¥348 million divestment
The divestment strategy follows a clear "Phase I recovery, Phases II/III relay" approach:
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Big Fund I (established 2014) is in its later-stage recovery period
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Big Fund II (2019) and Big Fund III (2024, ¥344 billion capitalization) will focus on advanced manufacturing processes, high-end equipment, and materials
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Capital recycling enables continued support for semiconductor self-sufficiency initiatives
ICgoodFind :The Big Fund's systematic divestment represents healthy capital recycling, with newer funds targeting more advanced semiconductor segments.
