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With an investment of 10 billion yuan, how can Hong Kong win the global chip competition?

Experts said that if Hong Kong wants to become a regional leader in the field of microelectronics, it should focus on making breakthroughs in semiconductor materials and chip packaging technology by attracting talents and enterprises. However, they warned that the process was not easy, and pointed out that considering the restrictions imposed by the United States on China’s acquisition of the technology, the city needed to commit to investing a large amount of money for many years and overcome the obstacles to acquiring Western chip equipment. The Financial Secretary of Hong Kong has allocated more than 10 billion Hong Kong dollars to promote the development of innovation and technology (I&T). A new microelectronics institute seeks to manufacture and produce popular chips for electric vehicles to complement the technology strategy of Chinese Mainland.

 

The measures of HK $10 billion include: HK $6 billion to support universities and scientific research institutions to develop special research centers related to life and health science and technology, and HK $3 billion to strengthen the basic exploration of cutting-edge technology fields such as artificial intelligence (AI) and quantum technology and the formation of the digital economy.

 

In the financial budget released by the Hong Kong government, the Financial Secretary Chen Maobo announced that he planned to set up a microelectronics research and development center in the Yuen Long Innovation Park next year, which attracted people’s attention. He expected the Institute to become “a leading institution supporting the development of microelectronics in the Asia-Pacific region”. Duncan Chiu, a member of the Legislative Council of the Information and Technology Department, said that the establishment of the Microelectronics Research Institute would help China make breakthroughs in semiconductor technology. “By bringing together international and mainland talents, Hong Kong has the ability to engage in chip design,” he said. “It is not necessary to develop high-end semiconductors, but to develop third-generation semiconductors that can be applied to smart devices.”

 

A government source said that the Microelectronics Research Institute aims to develop the local production of chips and semiconductors used to manufacture electric vehicles. People familiar with the matter added that the Institute will explore every opportunity to manufacture various chips and semiconductors, but its main focus will be on integrated circuit packaging and third-generation semiconductors for electric vehicles. Professor Huang Jinhui, Deputy Dean of the School of Engineering, China University of Hong Kong, said that if Hong Kong wants to succeed in the global chip competition, it needs to develop its own cutting-edge technology in the field of semiconductor materials and integrated circuit packaging. “If Hong Kong can develop a new semiconductor material to replace silicon, it will create a different technology for chip production, from design, manufacturing to packaging,” he said. “This is one of the ways to achieve breakthroughs in semiconductor technology and maintain a leading position.”

 

Silicon is the most widely used material in the manufacture of computer chips. Scientists are trying to create an alternative material that can better conduct heat and electricity for semiconductors. The third-generation semiconductors concerned by the municipal government use silicon carbide and gallium nitride, which are suitable for high-power equipment such as electric vehicles, data centers and renewable energy production.

 

Huang Jinhui said that Hong Kong can develop its own 3D integrated circuits, even 4D integrated circuits, for chip packaging, which can increase the amount of chip stacking and make up for the lack of high-end technology in Hong Kong to reduce chip size. “If Hong Kong can develop 3D or even 4D integrated circuits on its own, it can obtain technical patents and then start large-scale production of chips anywhere in the world,” he said. “Breakthrough in semiconductor technology is by no means easy. The city needs to actively seek relevant talents for R&D and technology transfer.” Since 2020, the supply of semiconductor chips has been in short supply. At that time, the global shortage caused by the interruption of the Covid-19 supply chain hit the Chinese science and technology industry.

 

In October 2022, the chip shortage began to worsen, when the United States imposed comprehensive restrictions on the export of semiconductors manufactured using American technology. The ban aims to cut off the supply of key technologies that China may have been using for advanced computing. China uses more than three quarters of the world’s semiconductors, but only produces about 15% of them. The decline in semiconductor chip trade has had a particularly serious impact on the mainland auto manufacturing industry. Professor Zhao Ruheng, vice president of research and innovation at Polytechnic University, said that in view of the restrictions imposed by the West on the mainland, Hong Kong needs to strive to attract talents in the semiconductor field and acquire chip equipment, such as precision tool mask aligners for chip manufacturing “The question is whether Hong Kong has the equipment needed for chip manufacturing,” he said. “What is the development goal and scale of this city? These are all questions that the city needs to consider.”

 

Zhao Ruheng added that Hong Kong had better focus its semiconductor ambitions on a single field such as quantum computing, rather than pursuing extensive chip production. “Hong Kong has its own advantages in attracting talents, because its system is completely different from that of the mainland, and it is easier to access western technology,” he said. “But the development of semiconductor technology needs long-term efforts, which will burn a lot of money. The government needs to find ways to raise funds for it.” The Science Park said that it will open a microelectronics center in the Innovation Park next year to provide advanced manufacturing centers for industries in this field.


Post time: Feb-28-2023


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