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The initial stage of China’s National Integrated Circuit Industry Investment Fund, known as Big Fund 1, is planning to divest stakes exceeding CNY3 billion (approximately USD422 million) in semiconductor firms Yandong Microelectronics and Piotech. Originally established to bolster the growth of China’s integrated circuit sector, the fund is accelerating its exit from early-stage investments and withdrawing from some initial projects.
Big Fund 1 intends to sell up to 8.43 million shares of Piotech, representing around 3% of the company’s total shares, through block trades from December 12 to March 11, 2026, according to the company. Based on yesterday’s closing price, the sale could total approximately CNY2.6 billion (USD366 million).
As of September 30, Big Fund 1 was Piotech’s biggest shareholder. These shares were acquired prior to Piotech’s initial public offering on Shanghai’s Nasdaq-style Star Market.
Additionally, Yandong Micro announced on November 19 that Big Fund 1, owning more than 5% of the company, plans to sell up to 1.5% of its total shares—around 21.4 million—via block trades or routine trading from December 11 to March 11, 2026. At yesterday’s closing price of CNY24.38 per share (roughly USD3.43), the sale could generate over CNY500 million (USD70 million).
This marks the third time this year that Big Fund 1 has divested shares in Yandong Micro, having previously sold 26.26 million shares across two rounds, totaling at least CNY500 million based on at the low end of the sale price.
Looking back at 2025, it’s clear that these sales are part of a deliberate, strategic plan. Many key companies across the semiconductor supply chain—including equipment, manufacturing, design, packaging, and testing—have been targeted for divestment.
In the sector of integrated circuit equipment and manufacturing, Naura Technology Group serves as a notable example. Big Fund 1 completed its third sale of Naura’s shares from July to September, reducing its stake to below 5%, effectively concluding nearly a decade of supportive investment.
Market analysts observe that these share sales reflect the fund’s operating strategy: first phase to recover initial investments, while subsequent phases continue to provide support.
Established in 2014, Big Fund 1 has moved into the latter part of its investment recovery cycle. The second phase, launched in 2019, along with the third phase formed last year with a registered capital of CNY344 billion (about USD48.4 billion), will focus on areas in urgent need of breakthroughs—such as advanced manufacturing, high-end equipment, and materials. It also aims to further promote a self-reliant and controllable semiconductor industry within China.
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