Financial Secretary Paul Chan said on Wednesday that the government is examining whether it's feasible to develop an artificial intelligance supercomputing centre in Hong Kong, as he announced HK$3 billion in new funding to boost technological research, including the AI field.

In his budget speech, Chan said officials were looking to complete a feasibility study on the supercomputing centre by the next financial year, noting that having sufficient computing infrastructure is a prerequisite for promoting AI development and scientific research.

He's also setting HK$3 billion aside to enhance basic research in what he called "frontier technology fields" such as AI and quantum technology, in a bid to enhance Hong Kong's ability able to deliver research breakthroughs.

Chan said the money would be used to develop facilities, "to leverage Hong Kong's unique advantage as a platform for international scientific research collaboration and attract leading innovation and technology talents, research teams and enterprises from the mainland and overseas" to come to the SAR.

Last year, Chan earmarked HK$10 billion to promote the development of the life and health technology sectors. The minister said on Wednesday that HK$6 billion of that funding would be set aside for subsidies for universities and research institutes to set up research centres.

Chan added that the government supports setting up an institute for microelectronics research and development, with the aim of making it a leading organisation for microelectronics research in the Asia-Pacific region.

"Given the rapid growth of its global demand, microelectronics has infinite room for development and Hong Kong must seize this opportunity," he told lawmakers. "The institute will be tasked with strengthening collaboration with universities, R&D centres and the industry."

The secretary said the organisation would help pool together talented researchers from the mainland and overseas and further nurture local researchers, enhancing the innovation and technology ecosystem.