Investment Strategy - The first phase of the National Integrated Circuit Industry Investment Fund (大基金一期) was established in 2014 with a registered capital of 98.7 billion, and actual funds received were approximately 120 billion [3] - The second phase (大基金二期) was established in 2019 with a registered capital of 204.2 billion, and actual funds received were around 220 billion [3] - Significant investments from both phases were directed towards wafer manufacturing, including companies like SMIC, Hua Hong Semiconductor, and Changjiang Storage [3] - Investments also extended to packaging segments, with companies such as Tongfu Microelectronics and Jiangsu Changjiang Electronics Technology [5] - The strategy focused on addressing the largest gaps in the semiconductor industry, particularly in manufacturing, while also investing in chip design, exemplified by companies like Huawei's HiSilicon [6][7] Management - The management of both phases is handled by Huaxin Investment Management Co., Ltd. (华芯), established in 2014 specifically for managing the fund [9] - The largest shareholder of Huaxin is the National Development Bank, which is also a significant contributor to the fund [9] - In the first phase, the Ministry of Finance was the largest contributor (36%), followed by the National Development Bank (22%), while in the second phase, the Ministry of Finance contributed 11.02% and the National Development Bank 10.78% [10] - The management structure raised questions about the dual role of the National Development Bank as both a manager and a major limited partner, reflecting a high level of trust from the state [10] - The first phase involved collaboration with other semiconductor investment institutions to mitigate risks, while the second phase saw a more mature investment capability with no additional management entities [10][11]