Sun Dong: Hong Kong vigorously promotes deep integration of technology and industries with the Greater Bay Area, establishing a globally competitive innovation ecosystem.

The Secretary for Innovation and Technology of Hong Kong, Mr. Sun Dong, stated in a written reply to legislators that the close economic integration between Hong Kong and the Greater Bay Area presents opportunities for cross-border scientific research cooperation, technology transfer, and the development of emerging and future industries. The Hong Kong government hopes to leverage the concept of "one cluster with two parks" to collaborate with mainland cities in the Greater Bay Area such as Shenzhen, to promote cross-border scientific research cooperation, technology transfer, and the development of emerging and future industries, aiming to build a globally competitive innovation and technology ecosystem. He mentioned that the government is accelerating the development of the Hong Kong Park in the He Tao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (He Tao Hong Kong Park) and the Xin Tian Science and Technology City, in order to facilitate the deep integration of technology innovation and industrial innovation. The He Tao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, constructed jointly by the Hong Kong Park and the Shenzhen Park based on the concept of "one river, two banks" and "one cluster with two parks", serves as a significant cooperation zone focusing on technology innovation. The Hong Kong Park was officially opened in December 2025. The SAR government is in close consultation with the Shenzhen municipal government and relevant national authorities to promote the cross-border circulation of innovative elements between the two parks in Shenzhen and Hong Kong through mechanisms such as "green channels" and "white lists", enhancing synergies and efficiency in enterprise trials. As a natural extension of He Tao, the Xin Tian Science and Technology City can integrate with mainland cities in the Greater Bay Area's complete industrial supply chain, receiving the research results from He Tao Hong Kong Park for industrial transformation and commercialization, establishing a complete industrial ecosystem. He Tao focuses on the development, transformation, and pilot testing of the upstream and midstream sectors, while Xin Tian Science and Technology City's larger scale of land provides space for the conversion of research results into prototypes, pilot testing, and mass production. Furthermore, the government launched the "Technology Accelerator Pilot Programme" in January 2026 to attract experienced technology accelerators from overseas to establish bases in Hong Kong, aiming to provide more comprehensive support for the development and needs of innovative technology enterprises through their business networks and expertise. Grants in the form of a 1:2 ratio (government: service provider) with a maximum limit of HK$30 million will be allocated to cover the necessary expenses of setting up and operating technology accelerators. Eligible technology accelerator service providers can apply before April 30. Mr. Sun also mentioned that the Hong Kong Microelectronics Research Institute (Microelectronics Research Institute) is actively preparing for the installation and commissioning of its third-generation semiconductor chip technology development and pilot production line, which is expected to start operating by the second quarter of this year. The Microelectronics Research Institute aims to hire around 80 semiconductor fab personnel with relevant industry and research experience by the first quarter of 2027 to support the operation of the pilot line. The Institute will continue to recruit staff (including administrative support staff, researchers, and semiconductor fab personnel) to establish a team of around 200 personnel in an orderly manner. Once the pilot line is fully operational, it is estimated that the Microelectronics Research Institute can handle about 50 project pilot production demands per year, including research and development, small-scale testing, pilot testing, and small-scale production, to assist the industry in addressing pain points, upgrading, and transforming, promoting technological innovation. To implement the cooperation agreement on developing new productive forces and promoting new industrialization with the Ministry of Industry and Information Technology of the People's Republic of China, the budget proposal suggests allocating approximately HK$220 million to establish the first overseas National Manufacturing Innovation Centre (Innovation Centre) in Hong Kong. This Innovation Centre will be located in the Microelectronics Centre Building in the Yuen Long Innovation Park, with the goal of promoting breakthroughs in key technologies, driving industrialization of outcomes, and attracting international talents, with the Microelectronics Research Institute undertaking the lead in operating the Innovation Centre based on its existing foundation. Regarding the "Innovation and Technology Venture Fund" (Venture Fund), Mr. Sun stated that applications for fund managers closed in mid-January this year. The received applications are currently under review to select suitable fund managers, who will be gradually interviewed in batches to commence fund operation later this year. The Venture Fund will cover five main themes, including life and health technology, artificial intelligence and Siasun Robot & Automation, semiconductors and smart devices, digitalization and upgrading, and future and sustainable development. The government plans to establish one to several sub-funds under each theme and select qualified professional fund managers, who will be responsible for setting up the sub-funds and raising market capital within 12 months of confirmation as qualified fund managers. The Venture Fund will operate in a market-oriented manner, considering market responses and industry developments to flexibly adjust the composition, number, and target scale of sub-funds under each theme. The government's total investment in the Venture Fund will be capped at HK$10 billion, with a preference to allocate approximately HK$2 billion evenly to each theme. The overall target scale of the sub-funds should be at least HK$40 billion, meaning that market investments will be at least three times the government's total capital injection. An Supervisory Committee comprising representatives from the business community, innovation and technology sector, investment community, and government will be established to provide independent advice on matters related to the Fund, including the establishment and management of sub-funds, investment objectives, investment management and agreement frameworks, supervision, and review, among others. Additionally, suitable supervision and review mechanisms will be devised, such as signing limited partnership agreements with fund managers stipulating their duties and responsibilities, including the obligation to allocate at least 25% of the fund's scale to establishing and operating production and manufacturing facilities in Hong Kong, covering pilot production lines, testing procedures, etc. Fund managers are also required to submit regular management reports to the supervisory committee and be subject to its oversight.