In a bold move to reshape its economic landscape, Hong Kong is making significant strides in attracting major investments in advanced manufacturing, particularly in the semiconductor industry. The government’s commitment to fostering innovation and technology is evident as global semiconductor giants pledge billions of dollars in research, development, and production within the city.
Sun Dong, Secretary for Innovation, Technology, and Industry, emphasized the government’s determination to draw advanced manufacturing to Hong Kong at the Advanced Manufacturing Forum organized by InvestHK and the South China Morning Post. The focus is on leveraging innovative technologies such as robotics, artificial intelligence, the Internet of Things, and 3D printing to enhance production efficiency.
Over the past year, Hong Kong’s efforts have borne fruit, with strategic investments from top-notch mainland and overseas R&D companies, especially in semiconductors and new energy vehicles. Horizon Robotics, a leading automotive chip designer, recently signed a memorandum of understanding to invest HK$3 billion in the city over the next five years. This aligns with a broader trend, including agreements with Black Sesame Technologies and J2 Semiconductor, showcasing a growing interest in Hong Kong’s advanced manufacturing capabilities.
Although Hong Kong may not be an ideal location for large-scale chip production due to limited land supply, it is emerging as a prime hub for research and early-stage production for semiconductor firms. Experts, including Peter Ng of ASMPT Hong Kong Technology, emphasize the city’s strengths, such as a robust talent pool from world-class universities, its gateway status to China, and fundraising opportunities through the Hong Kong stock exchange.
Roy Chan, a partner at PwC, highlights Hong Kong’s suitability for high-value and advanced manufacturing in various sectors, from semiconductors to medical technologies, precision robotics, and satellites. The city’s commitment to supporting emerging industries is evident in the allocation of HK$10 billion in government funds, with a special focus on advanced manufacturing. Eligible businesses, including those in health technologies, artificial intelligence, green energy, and advanced manufacturing, can receive substantial government funding to catalyze their growth.
Government initiatives go beyond mere financial support. Plans to open new development offices in the coming year, including a research cluster for advanced manufacturing, underscore the commitment to establishing Hong Kong as a key player in the global advanced manufacturing landscape.
As Hong Kong positions itself as a hub for innovation and cutting-edge technologies, the city is set to reap the benefits of a diversified economy, job creation, and global recognition in the advanced manufacturing sector. The collaboration between government agencies, private enterprises, and international companies signals a promising future for Hong Kong’s industrialization journey.
(Source: Dylan Butts | SCMP)
