The Hong Kong Science and Technology Parks Corp and J2 Semiconductor (Shanghai) sign a memorandum of understanding on Oct 13, 2023 in the presence of Sun Dong (back row, center), secretary for innovation, technology and industry; Sunny Chai Ngai-chiu (back row, 2nd left), chairman of the HKSTP; Robert Tsu (back row, 2nd right), chairman of J2 Semiconductor (Shanghai); Philip Yung (back row, 1st left), director-general of the office for attracting strategic enterprises; and Lillian Cheong (back row, 1st right), under secretary for innovation, technology and industry. (LI XIAOYUN / CHINA DAILY)

Hong Kong Science and Technology Parks Corp (HKSTP) signed a memorandum of understanding with Shanghai-based J2 Semiconductor on Friday in a move to drive the advancement of Hong Kong’s microelectronics ecosystem and the third-generation semiconductor-chip industry.

Under the MoU, the microelectronics enterprise will set up a global research and development center at the park, focusing on the development of third-generation semiconductors. The establishment will mark Hong Kong’s first large-scale SiC 8-inch wafer fabrication.

Sun said that the project places a strong emphasis on nurturing local talent to enhance the quality and competitiveness of Hong Kong’s human resources in technology, while driving the development of related industries, including semiconductor equipment manufacturing, materials supply, and testing services

Construction of the HK$6.9 billion ($882 million) project is scheduled to begin in the first quarter of next year.

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The mainland company aims to achieve an annual production of 240,000 silicon carbide (SiC) wafers by 2028, driving an output value of more than HK$11 billion per year and creating over 700 job positions.

Sun Dong, secretary for innovation, technology and industry, said the bureau had its first contact with the semiconductor chip enterprise in August, and within a span of only two months, they finalized the agreement. “This indicates the Hong Kong government’s determination to foster the development of the semiconductor industry,” Sun said.

“As the first company specializing in the third-generation semiconductor industry introduced in Hong Kong, J2 Semiconductor, together with the government, has laid out comprehensive plans for its development over the next five to 10 years,” he said.

He revealed that the project aims to achieve an annual output value exceeding HK$70 billion within 10 years.

Sun said that the project places a strong emphasis on nurturing local talent to enhance the quality and competitiveness of Hong Kong’s human resources in technology, while driving the development of related industries, including semiconductor equipment manufacturing, materials supply, and testing services. “These efforts will elevate Hong Kong’s position in the value chain of global semiconductor industry,” he said.

The industry chief stressed that the government’s efforts to advance the semiconductor industry “do not mean doing everything”, but rather stem from “a comprehensive consideration of Hong Kong’s research capabilities, geographical advantages, and the opportunities that semiconductors can bring to the city”.

HKSTP Chairman Sunny Chai Ngai-chiu said, “The plan to establish J2 Semiconductor’s R&D center at the Science Park will promote Hong Kong’s R&D and advanced manufacturing capabilities of third-generation semiconductor chips.

“J2 Semiconductor brings the core technology and expertise to Hong Kong in advanced chip design, fabrication process and semiconductor product development, which is an important milestone in the development of microelectronics industry in Hong Kong,” he said.

J2 Semiconductor (Shanghai) Chairman Robert Tsu said that the company’s decision to establish its presence in Hong Kong was driven by the city’s three key advantages — the international business and legal environment, the talent resources brought by its five universities in the world’s top 100 list, and the government’s strong determination and execution capabilities in promoting innovation and technology.

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Sun Dong, secretary for innovation, technology and industry, answers questions from the media after the signing ceremony of Memorandum of Understanding between the Hong Kong Science and Technology Parks Corporation and J2 Semiconductor (Shanghai) on Oct 13, 2023. (LI XIAOYUN / CHINA DAILY)

The move follows the release of the Hong Kong Innovation and Technology Development Blueprint by the Innovation, Technology and Industry Bureau in December, which declared a mission to support strategically advanced manufacturing industries, such as semiconductors and microelectronics, to promote the development of Hong Kong’s “new industrialization”.

Contact the writer at irisli@chinadailyhk.com