(Yicai) Nov. 21 -- The first phase of China’s National Integrated Circuit Industry Investment Fund, also known as Big Fund 1, is planning to sell stakes worth over CNY3 billion (USD421.9 million) in semiconductor companies Yandong Microelectronics and Piotech. The fund, originally set up to support the development of China's integrated circuit industry, is stepping up the pace of cashing out investments and is withdrawing from some of its early-stage projects.

Big Fund 1 plans to reduce its holdings in Piotech by as much as 8.43 million shares, or up to 3 percent of the Shenyang-based firm’s total share capital, via block trades from Dec. 12 to March 11, 2026, the semiconductor equipment manufacturer said yesterday. Based on yesterday’s closing price [SHA:688072], the sale would amount to CNY2.6 billion (USD365.7 million).

Big Fund I was Piotech’s largest shareholder as of Sept. 30. The shares were bought before Piotech went public on Shanghai's Nasdaq-style Star Market.

Yandong Micro also said on Nov. 19 that Big Fund I, a shareholder with more than 5 percent equity, plans to sell up to 1.5 percent of the company’s total share capital, which is equivalent to 21.4 million shares, via block trades or regular trading from Dec. 11 to March 11, 2026. Based on yesterday’s closing price [SHA:688172] of CNY24.38 (USD3.43) a share, the sale would rake in over CNY500 million (USD70.3 million).

This will be the third time this year that Big Fund 1 sells shares in Beijing-based Yandong Micro. The fund sold 26.26 million shares in the first two rounds, worth at least CNY500 million (USD70.3 million) based on calculations at the lower end of the sale price.

Looking back at the full year of 2025, it is clear that the sell-offs by Big Fund I are part of a planned, systematic strategy. Many key companies along the semiconductor supply chain, from equipment, manufacturing and design to packaging and testing, have been included in its selling plans.

In the integrated circuit equipment and manufacturing sector, Naura Technology Group is a notable example. Big Fund 1 completed its third sell-off of the Beijing-based firm’s shares from July to September, paring its stake to under 5 percent and effectively closing a near decade-long period of ‘supportive investment.’

Market analysts say this flurry of share sales clearly reflects the Big Fund’s operating logic, which is for its first phase to recoup its investment, while the second and third phases offer continued support.

Big Fund I, which was established in 2014, has entered the second half of its investment payback period. Big Fund Phase II, which was set up in 2019, and Big Fund Phase III, which was formed last year with a registered capital of CNY344 billion (USD48.4 billion), will focus on supporting links in the semiconductor industry that are in urgent need of breakthroughs, such as advanced manufacturing processes, high-end equipment and materials. It will also continue to fulfill its mission of promoting a self-reliant and controllable semiconductor industry in China.

Editor: Kim Taylor