Core Viewpoint - The article discusses the recent reduction of shareholding by the National Integrated Circuit Industry Investment Fund (Big Fund) in Huahong Semiconductor, indicating a strategic shift towards mature process technology and a focus on self-sustaining profitability for mature foundries [2][3]. Group 1: Shareholding Changes - On June 18, the Big Fund reduced its stake in Huahong Semiconductor from 6.16% to 5.94% by selling 6.333 million shares [2]. - This marks the continuation of a trend that began in 2021, with multiple reductions leading to fluctuations in Huahong's stock price [2]. - On May 9, 2025, the Big Fund also reduced its holdings in SMIC by 65.9772 million shares, alongside a significant reduction in Huahong [2]. Group 2: Financial Performance - In Q1 2025, Huahong Semiconductor reported a revenue increase of 18.66% year-on-year, reaching 3.913 billion yuan, but its net profit plummeted by 89.73% to 22.76 million yuan [2]. - The stock price of Huahong Semiconductor fell over 11% following the recent share reductions by the Big Fund and other state-owned investment entities [2]. Group 3: Strategic Implications - The article suggests that the recent share reductions do not necessarily indicate a negative outlook on Huahong's value but reflect the Big Fund's strategic adjustment towards mature process technology [2][3]. - The Big Fund's first phase has entered a recovery period, with funds being redirected to subsequent phases, focusing on critical areas such as lithography machines and EDA tools [2]. - Huahong Semiconductor maintains international competitiveness in specialized processes like IGBT and embedded flash, with a long-term capacity utilization rate of over 90% at its 12-inch plant in Wuxi [3].