TECH

China’s ‘Big Fund’ Trims Chip Stakes as Early Investments Mature

Published: Feb. 9, 2026 7:06 p.m. GMT+8

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Workers operate machines at a semiconductor company in Suqian, Jiangsu province. Photo: VCG

China’s state-backed semiconductor investment vehicle has launched a series of divestments from listed chipmakers so far this year, as earlier investment phases enter their exit cycle.

The China Integrated Circuit Industry Investment Fund, also known as the “Big Fund,” will reduce its holdings in Shanghai Anlogic Infotech Co. Ltd. (688107.SH), the affected company said in a stock exchange filing dated Monday.

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China's "Big Fund" is divesting from several listed chipmakers as its earlier investment phases enter the exit cycle.
The first two fund phases raised 138.7 billion yuan (2014) and 204.1 billion yuan (2019), while the third, launched in 2024, totals 344 billion yuan.
Big Fund III, post-2022 anti-corruption probe, is expected to focus on long-term investments in key technology chokepoints.

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Who’s Who

Shanghai Anlogic Infotech Co. Ltd.: Shanghai Anlogic Infotech Co. Ltd. (688107.SH) is a chipmaker and is included in the "Big Fund's" divestment plans. The company anticipates financial difficulties, with projected revenue declines and widening losses for 2025. This divestment by the state-backed investment vehicle aligns with its strategy to exit earlier investment phases.

National Silicon Industry Group Co. Ltd.: National Silicon Industry Group Co. Ltd. (688126.SH) is a semiconductor company that the "Big Fund" (China Integrated Circuit Industry Investment Fund) has reduced or plans to reduce its holdings in. This divestment is part of the Big Fund's strategy as earlier investment phases mature and exit specific assets, having fulfilled their historical missions.

Suzhou Centec Communications Co. Ltd.: Suzhou Centec Communications Co. Ltd. (688702.SH) is a chipmaker from which China's state-backed semiconductor investment vehicle, the "Big Fund," plans to reduce its holdings. This divestment is part of the fund's strategy as its earlier investment phases enter their exit cycle, aiming to fulfill operational needs and historical missions.

Telink Semiconductor Shanghai Co. Ltd.: Telink Semiconductor Shanghai Co. Ltd. (688591.SH) is a chipmaker mentioned in the article. The China Integrated Circuit Industry Investment Fund, also known as the "Big Fund," has reduced or plans to reduce its holdings in the company. This divestment is part of the Big Fund's strategy as earlier investment phases enter their exit cycle.

Smarter Microelectronics (Guangzhou) Co. Ltd.: Smarter Microelectronics (Guangzhou) Co. Ltd. (688512.SH) is a company from which China's state-backed semiconductor investment vehicle, the "Big Fund II," has recently divested. The Big Fund II sold approximately 0.58% of its shares in Smarter Microelectronics, as disclosed in a recent company filing.

Semiconductor Manufacturing International Corp.: Semiconductor Manufacturing International Corp. (SMIC) was a beneficiary of the "Big Fund's" initial investment phase, established in 2014. This phase, which raised 138.7 billion yuan, primarily focused on chip manufacturing and invested in significant companies like SMIC, aligning with China's strategy to reduce reliance on foreign semiconductors.

Sino IC Capital Co. Ltd.: Sino IC Capital Co. Ltd. (华芯投资管理有限责任公司) is the sole manager of China's "Big Fund" (China Integrated Circuit Industry Investment Fund). It was subject to a sweeping anti-corruption probe in 2022, which led to investigations into several of its executives.

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What Happened When

2014：: The China Integrated Circuit Industry Investment Fund (the 'Big Fund') was created to reduce China’s reliance on foreign semiconductors.

2015：: The first phase of the Big Fund was established.

2019：: The second phase of the Big Fund was launched with a focus on equipment and materials.

2020：: The second phase of the Big Fund reached six years of existence by 2026, confirming its establishment year as 2020.

2022：: A sweeping anti-corruption probe was launched, leading to investigations into executives of the Big Fund and Sino IC Capital Co. Ltd.

May 2024：: The Big Fund III was incorporated with registered capital of 344 billion yuan.

Early February 2026：: The Big Fund announced, in company filings, its reduction or planned reduction of holdings in several chipmakers, including Shanghai Anlogic Infotech, National Silicon Industry Group, Suzhou Centec Communications, Telink Semiconductor Shanghai, and Smarter Microelectronics.

Saturday, February 8, 2026：: Smarter Microelectronics disclosed in a stock exchange filing that the Big Fund II recently sold about 0.58% of its shares.