Hong Kong AI Memory Chips Market Size and Forecast by Type, Node Type, End User Application, and Distribution Channel: 2019-2033

Hong Kong AI Memory Chips Market Outlook

The Hong Kong AI memory chips market is entering a dynamic growth phase, propelled by strategic investments in third-generation semiconductor technologies and open chip architectures like RISC-V. With Gallium Nitride (GaN) and Silicon Carbide (SiC) at the core of this momentum, Hong Kong is carving out a competitive edge in a field historically dominated by the US, South Korea, and Taiwan. According to David Gomes, Manager – IT, the market is poised to surpass US$XX billion by 2033, anchored by local production initiatives and supportive government policy. At the heart of this transformation is MassPhoton’s HK$200 million (US$25.6 million) investment to establish the city’s first GaN wafer production line. Targeting a production capacity of 10,000 units annually by 2027, this project aligns with global demand for energy-efficient, compact, and high-performance chips used in AI computing, electric vehicles, and advanced power systems.

One key growth driver is the reduced exposure to international trade restrictions when using GaN and SiC over traditional silicon wafers, enabling easier acquisition of manufacturing equipment and export market access. These third-generation semiconductors offer higher energy efficiency, superior thermal conductivity, and faster switching speeds, making them ideal for AI accelerators and next-gen memory chip architectures. Hong Kong’s strategic push into GaN and SiC production positions it as a neutral ground in the ongoing US-China chip rivalry, creating a more resilient and sovereign tech ecosystem.

Strengthening this ecosystem is a series of strategic collaborations within the Greater Bay Area. In October 2024, Hong Kong Science and Technology Parks (HKSTP) signed a landmark agreement with J2 Semiconductor, a Shanghai-based chipmaker, to build Hong Kong’s first 8-inch SiC wafer fab with a colossal HK$6.9 billion (US$882 million) investment. The facility is projected to produce 240,000 wafers annually by 2028—enough to power 1.5 million electric vehicles—and generate over HK$11 billion in annual output. Backed by the Innovation, Technology and Industry Bureau and the Office for Attracting Strategic Enterprises (OASES), this initiative is expected to create over 700 high-skilled jobs and spark a ripple effect across automotive, power conversion, and industrial IoT segments.

On the R&D front, Hong Kong is establishing the Microelectronics Research and Development Institute (MRDI) at Yuen Long InnoPark, slated to begin operations in 2025. With HK$2.84 billion in government funding (US$364 million), the facility will focus on cutting-edge research in SiC and GaN technologies and operate two pilot production lines. Of the total, HK$2.48 billion is allocated to equipment procurement and HK$360 million for operational costs over five years. The institute also plans to onboard 200 specialists—170 researchers and 30 administrative staff—fueling local innovation and addressing the region’s brain drain challenge.

Hong Kong’s push into RISC-V chip development further illustrates its long-term vision. The Hong Kong Investment Corporation (HKIC) has taken a strategic stake in StarFive, a Chinese leader in RISC-V architectures. StarFive is establishing a Hong Kong subsidiary, expanding R&D operations and deploying data center-grade RISC-V chips like "Lion Rock" in collaboration with Fusion Tech. In a practical use case, China Mobile Hong Kong is working with StarFive to roll out the GangHua Chip, a secure IoT solution for smart gas management systems. These initiatives reflect Hong Kong’s commitment to creating a sovereign, low-barrier, and license-free chip ecosystem in an era where global dependence on x86 and ARM architectures presents both cost and compliance risks.

Executives such as Professor Sun Dong, Secretary for Innovation, Technology and Industry, emphasize that these developments reflect Hong Kong’s broader “new industrialization” blueprint. By leveraging mainland China’s production scale with Hong Kong’s research capabilities, the city aims to become a global microelectronics hub resilient to geopolitical turbulence. In particular, the synergy with the Greater Bay Area provides access to talent, logistics, and scalable infrastructure, ensuring Hong Kong’s competitiveness even in a saturated global semiconductor market.

From an investor’s standpoint, Hong Kong’s AI memory chip initiatives offer clear signals of long-term viability and institutional support. Government-backed funding, private sector involvement, and the city’s neutral geopolitical position make it a rare high-potential environment for emerging semiconductor ventures. Companies like Jetlex Semiconductor are already responding, building a SiC fab set to begin operations in 2026 with an annual capacity matching that of J2 Semiconductor’s project. Together, these facilities could position Hong Kong as one of the few global cities with independent access to both R&D and mass-scale third-gen chip manufacturing by 2028.

Author: David Gomes (Manager – IT)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

Hong Kong AI Memory Chips Market Scope