Henan Oriental Materials, a Chinese mainland integrated circuit maker, announced on Monday plans to invest more than HK$800 million ($102 million) to establish a semiconductor equipment production base in Hong Kong, marking a step forward in the city’s efforts to build a robust microelectronics ecosystem.
Located at the Microelectronics Centre in Yuen Long InnoPark, a 67-hectare industrial estate near the Shenzhen Bay Port and operated by the Hong Kong Science and Technology Parks Corporation (HKSTP), the facility will be the first in Hong Kong dedicated to the research, development and manufacturing of front-end semiconductor equipment.
The first phase of production will focus on the advanced manufacturing of furnace tubes, etching systems and chemical vapor deposition tools, the company said.
The project has been approved under the Hong Kong Special Administrative Region government’s HK$10 billion New Industrialisation Acceleration Scheme, and is expected to receive funding of about HK$200 million.
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Secretary for Innovation, Technology and Industry Sun Dong said, as a “little giant” — small and medium-sized companies recognized for being highly specialized and innovative — Henan Oriental Materials will contribute its expertise and experience in semiconductor equipment, components and materials.
Hong Kong has stepped up efforts in recent years to build a microelectronics ecosystem, Sun said. In September 2024, the SAR government established the Hong Kong Microelectronics Research and Development Institute to promote the commercialization of research and leverage the Guangdong-Hong Kong-Macao Greater Bay Area’s manufacturing supply chain.
He added that the institute’s pilot production line for third-generation semiconductor chips at the Microelectronics Centre is expected to begin operations within the year.
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Moreover, the city’s 2026-27 Budget earmarked about HK$220 million to establish the first national manufacturing innovation center outside the Chinese mainland, focusing on semiconductor-related research. Sun said, “This will strengthen Hong Kong’s microelectronics ecosystem and support the country’s drive for original innovation and technological breakthroughs in the semiconductor sector.”
Citing Hong Kong’s innovation ecosystem, research infrastructure and international connectivity, Wang Yongchao, chairman of Henan Oriental Materials, said the decision to base the new facility in the city is “a carefully considered strategic move”.
“As a ‘super-connector’ linking the Chinese mainland and the world, Hong Kong is the ideal gateway for the company’s global expansion,” Wang said.
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HKSTP Chairman Sunny Chai Ngai-chiu said with the country’s 15th Five-Year Plan (2026-30) reiterating support for Hong Kong’s development as an international innovation and technology center, “Hong Kong is facing a major opportunity to grow its microelectronics industry”.
Henan Oriental Materials’ arrival marks a breakthrough in the city’s efforts to promote new industrialization, he added.
In a separate event, Hong Kong Chief Executive John Lee Ka-chiu said the country has taken a global lead in areas such as artificial intelligence and big data, and is now focused on expanding its domestic market, fostering new growth drivers and accelerating high-level technological self-reliance.
He said the Hong Kong SAR can capitalize on the Chinese mainland’s industrial ecosystem and development momentum to achieve faster growth in its own emerging industries.
“The city must pursue a multi-pronged growth strategy, consolidating and upgrading its traditional strengths while also nurturing new quality productive forces,” he added.
Contact the writer at irisli@chinadailyhk.com
