Hong Kong to seek HK$2.84 billion funding for chip research institute, US-led tech restrictions will not hinder set up, city’s tech chief says
“The objective is to lead and facilitate collaboration among universities, research centres and industries to study the core technologies of third-generation semiconductors, leveraging the comprehensive manufacturing industry chain and vast market of the Greater Bay Area,” Sun said.
The bay area refers to Beijing’s initiative to integrate Hong Kong, Macau and nine mainland China cities into an economic powerhouse.
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The institute will set up two major pilot production lines to conduct research and testing on silicon carbide and gallium nitride, both promising compounds in the field of new material technology, as part of a growing push towards electric vehicles and renewable energy sources.
Sun added that semiconductor equipment would depend on support from the motherland, given Hong Kong’s limitations.
“There are many semiconductor equipment manufacturers in mainland China, and some companies even manufacture semiconductors in Hong Kong,” he said.
“They are currently in discussions with us on how to leverage Hong Kong as a platform to enter the international market.”
According to World Semiconductor Trade Statistics, the global semiconductor market was worth US$580 billion in 2022 and expected to exceed US$1 trillion by 2030, while the mainland made up around 40 per cent of the global market.
Sun said the bureau would seek approval by the end of second quarter in 2024 from Legco’s Finance Committee on the funding of HK$2.84 billion, of which HK$$2.48 billion would be allocated to procuring the pilot lines equipment. The remaining HK$360 million would go into operating expenses for the first five years, he added.
An office for the institute would be set up in the second half of 2024, and the tender process for pilot line equipment would be conducted in the last quarter of the same year, Sun said.
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Pilot line contracts would be awarded in the first quarter of 2025 and installation would take place in the third quarter, he said.
Recruitment would be carried out in stages for the microelectronics research institute of around 200 people, comprising 170 researchers as well as 30 management and administrative staff, Sun added.
Lawmakers including Johnny Ng Kit-chong and Martin Liao Cheung-kong raised concerns that the manpower demand of the institute would be lacking given the citywide brain drain in the semiconductor industry.
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But Sun stressed that the city always had talented individuals.
“For many years, Hong Kong has been lacking in this industry, but our graduates have accumulated a lot of experience overseas,” he said. “We hope to attract some of them to return and contribute to Hong Kong.
“The establishment of the institute is just the first step. We aim to consolidate our strongest research resources in Hong Kong and attract overseas talent.”