Datong Chen | Chip Stories (Part 2)

From OmniVision’s Privatization to the Founding of Dongfang Polytechnic University

Author:

• Tsinghua University — B.Sc / M.Sc / Ph.D
• Founding Partner — Yuanhe Puhua Capital
• Co‑founder — OmniVision Technologies (Silicon Valley) & Spreadtrum Communications (Shanghai)
• Chairman — Ningbo Yurong Education Foundation

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On August 30, 2025, I attended the inaugural opening ceremony of Ningbo Dongfang Polytechnic University. That night, memories flooded back — the journey to this day was long and arduous.

Back in 2012, I wrote ten columns for Shuimu Tsinghua, recounting the founding of OmniVision (Silicon Valley, 1995) and Spreadtrum Communications (Shanghai, 2001). In 2024, after the TV drama Blazing Heat aired, these articles were compiled into Chen Datong – Chip Memories.

This time, I’ll summarize my experiences from OmniVision’s return to China to the founding of Dongfang Polytechnic, as a tribute to over 20 years of China’s semiconductor tides.

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01 — Switching to Venture Capital: From Athlete to Coach

After Spreadtrum Communications listed on NASDAQ (2007), I transitioned from entrepreneur to venture capitalist.

Key insights from Silicon Valley:

• VC is more than capital — it’s an innovation ecosystem.
• China (circa 2005) lacked such an ecosystem.
• Hard-tech VC started moving from Silicon Valley to China, with pioneers like Northern Light VC, Sequoia China, and GSR Ventures.

My decision:

• One company → limited impact.
• A successful VC → dozens or hundreds of startups supported.
• Supporting the next wave became my mission.

March 2008: Joined Northern Light Venture Capital (founded by Deng Feng, Tsinghua EE ’81).

Challenge:

• Mainstream VC targeted internet/consumer sectors.
• Semiconductors = niche of niches.

Turning point:

• 2009: At a conference, a high-profile investor declared “No money to be made in semiconductors.”
• I vowed to prove otherwise.
• 2019: STAR Market launch → semiconductors listed in batches → proof of decade-long persistence.

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02 — First Steps in Hard-Tech VC

2008: Global financial crisis.

2009: Formed Huashan Capital with Yang Lei, Deng Jie, Yu Jun — all Tsinghua alumni. CIC became our primary LP.

Strategy:

• Overseas (Silicon Valley): Internet soft-tech (Unity, Twitch).
• Domestic China: Hard-tech — semiconductors, “choke point” technologies.

Outcome:

• First/Second funds: 6 investments → 5 IPOs (GigaDevice, VeriSilicon, Anji Micro, Ninebot Robotics, United Photonics).
• From athlete to coach — cultivating startups in batches.

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03 — National Power & Semiconductor Spring

2014:

• June: State Council announces Outline for Promoting the Integrated Circuit Industry.
• October: Establishment of 128‑billion RMB National IC Industry Fund (“Big Fund”).

Big Fund’s Impact:

• Manufacturing capacity surge.
• Equipment & materials breakthroughs.
• Advanced processes (FinFET).
• Memory leadership — Yangtze Memory (NAND), Hefei ChangXin (DRAM).
• Capital market boost: STAR Market accelerated sector IPOs.

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Reflection:

From 2000’s low point to 1,000× output value increase — reborn through struggle.

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04 — Birth of the Puhua Team

2014 Beijing Local IC Fund:

• Equipment & Manufacturing Fund — RMB 6B.
• Design, Packaging, Testing Fund — RMB 2B (Govt RMB 0.5B + GP market-raise RMB 1.5B).

Challenges:

• Semiconductor VC in 2014 = deep winter.
• Mobilization meeting → Huashan + Walden team-up.

Execution:

• Registered Huachuang Investment.
• Raised funds via SMIC & Tsinghua Holdings (RMB 100M each).
• GP: Huachuang (51%), Tsinghua Holdings (24.5%), SMIC (24.5%).
• By Oct 2014 — RMB 1.1B first close.
• 2018 — Yuanhe Puhua PE Fund with Big Fund & Suzhou Yuanhe Holdings.

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05 — “China Concept Stocks” Return & OmniVision Privatization

2013: Tsinghua Unigroup acquires Spreadtrum — first major “return” of US‑listed Chinese semiconductor firm.

2014: Talks start for OmniVision privatization & return.

• Initial interest from Pudong Science & Technology Investment (PSTI) — later paused for institutional reform.
• Huachuang proceeds alone on “Mission Impossible”.

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06 — Grassroots Team’s Daring Adventure

With only RMB 300M capacity from Beijing Fund, OmniVision’s USD 1B deal seemed fantasy — requiring creative funding strategies (“empty-handed white wolf”, “wool from other’s back”).

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07 — Acquisition Path: Close Calls

Consortium: Huachuang + BIIC + Jinshi Investment (CITIC Securities).

Challenges:

• Withdrawal of BIIC over compliance redlines.
• Sudden CITIC Jinshi funding shortfall.
• Stock market crash disrupting key investor liquidity.

Solutions:

• New triangle: Huachuang + CITIC Capital + Jinshi.
• Emergency funding via Wingtech & ICBC International.
• Navigated CFIUS approval process.

By Jan 2016 — OmniVision acquired & delisted from NASDAQ.

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08 — Backdoor Listing via Junzhen Fails

2016–17: Attempted backdoor listing into Beijing Junzhen (video surveillance chips) — suspended due to regulatory rule changes.

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09 — OmniVision Performance Decline & Need for Localization

Post-acquisition issues:

• Mobile & security markets dominated by domestic clients.
• Out-of-touch product definitions.
• Supply chain strain & pricing pressure.

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10 — Crisis Countdown: Leadership Transition

• Persuading Mr. Hong to retire.
• Interim CEO phase & deep company diagnostics.
• Selection of Will Semiconductor as “shell” company.

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11 — Yu Renrong’s Takeover & Transformation

Yu’s strategies:

• Personally lead domestic market engagement.
• Streamline R&D — focus on high-probability hits.
• Lock in supply chain capacity (Huahong, SMIC).
• Leverage low-cost subsidiary SuperPix for low-end markets.
• Advance high-end pixel technology ahead of Sony.

Result: Net profit growth from RMB 300M (2017) → RMB 3B+ (2025).

2019: Acquired by Will Semiconductor (later renamed OmniVision Group, 2025).

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12 — Philanthropy: Founding Dongfang Polytechnic University

2020: Yu Renrong pledges RMB 30B to create a top private research university in Ningbo — modeled after MIT/Stanford.

2021: Academician Chen Shiyi appointed founding President.

2025: Ministry of Education approves Eastern Institute of Technology (Ningbo).

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13 — Eastern Institute of Technology (Ningbo)

• Goal: 10,000 students in 10 years.
• Student ratio: B.Sc : M.Sc : Ph.D = 4 : 3 : 3.
• Four academic clusters: Science, Engineering, Information, Business.
• August 2025: 443 doctoral students enrolled, 16 academicians signed as founding professors.

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Final Reflections

From Silicon Valley entrepreneurship to Chinese semiconductor leadership, and finally to founding a world-class university — this is a journey of opportunity, resilience, and contribution.

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Dedicated to:

The generation of “old overseas students” of the 1980s–90s — for their devotion, perseverance, and impact on China’s rise.