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

Hong Kong AI Processor Chips Market Growth and Performance

• DataCube Research forecasts the Hong Kong AI processor chips market size in 2033 to reach a projected US$ XX3 Billion.
• Moreover, our projections suggest that the market is positioned for sustained growth, with an expected annual growth rate of 21.7%, as indicated by the CAGR.

Hong Kong AI Processor Chips Market Outlook

Hong Kong is rapidly evolving into a strategic node in the global AI processor chips market, leveraging open-source architectures like RISC-V to bolster its position amid growing geopolitical and technological shifts. As U.S. export restrictions continue to tighten around advanced semiconductors, Hong Kong is seizing the opportunity to align with China’s national ambitions for semiconductor independence and AI infrastructure development. The city’s embrace of RISC-V, an open-source chip design architecture developed in 2010, is not just a technical pivot—it is a calculated move toward sovereignty in processor technology and AI hardware innovation.

Unlike proprietary architectures like Intel's x86 or Arm, RISC-V is royalty-free and allows full customization. This has made it a go-to alternative for economies seeking to reduce dependency on Western-controlled semiconductor technology. For Hong Kong, this represents more than just a licensing advantage—it is a foundation for collaborative innovation. Through strategic partnerships with companies like StarFive Technology, Hong Kong is working closely with local universities to develop joint R&D centers and innovation hubs focused on RISC-V, effectively building an indigenous ecosystem tailored for AI and machine learning workloads.

The city’s commitment to this vision is reflected in public policy. In the 2025 budget, Finance Secretary Paul Chan Mo-po underscored the importance of RISC-V, linking it directly with the government’s larger goals in artificial intelligence and open-source technology. These initiatives are also backed by real investments, including the establishment of Hong Kong's first gallium nitride (GaN) wafer production line, through local firm MassPhoton. With a planned capacity of 10,000 units annually by 2027 and a HK$200 million investment, the GaN line is set to enhance energy-efficient computing, making Hong Kong a critical part of the global AI supply chain.

Mainland China’s momentum further amplifies Hong Kong’s positioning. Landmark developments like the XiangShan CPU, integration with AI models such as DeepSeek-R1, and a string of RISC-V-focused conferences are nurturing a regional knowledge economy. With China allocating over US$97 billion to its semiconductor sector, Hong Kong stands to benefit by acting as a research and regulatory bridge. It is already crafting AI governance frameworks around fintech applications, cryptocurrency, and algorithmic trading—domains that are often the first to adopt next-gen AI chips.

Meanwhile, industry players like Huawei have responded to global supply chain turbulence by launching alternatives like the Ascend 920 AI Chip, capable of delivering over 900 TFLOPS. These chips support HBM3 and reinforce the push for localized AI data centers. Additionally, global dynamics such as the U.S. tariffs, now reaching up to 245% on certain tech exports, are reshaping manufacturing footprints. Firms like Nvidia and TSMC are responding with production expansions in the U.S., driving a divergence in global chip design and production strategies.

Hong Kong’s comparative advantage lies in its agility and access—to talent, to capital, and to Chinese national infrastructure. By aligning itself with open-source architectures and integrating with China’s long-term semiconductor roadmap, Hong Kong is not only securing its own technological future but also enhancing the resilience and decentralization of the broader global AI processor chips market.

Hong Kong AI Processor Chips Market Scope