A mainland manufacturer of semiconductor equipment setting up shop in Hong Kong's Yuen Long InnoPark began building its plant on Monday, targeting a production start by the middle of next year.

Henan Oriental Materials, which makes front-end equipment and key components, is on a national list of innovative enterprises that have been dubbed "Little Giants".

The SAR is giving around HK$200 million in subsidies to the firm, which is investing HK$800 million in the project.

Secretary for Innovation, Technology and Industry Sun Dong said in a launching ceremony that the government had earmarked HK$10 billion in 2024 to speed up new industrialisation and attracting strategic enterprises to set up in Hong Kong.

He said the plant was one of four approved applications and that the firms' investment pledge was in excess of HK$2.5 billion.

With the country's latest five-year plan clearly stating that new industrialisation has to be a major development area during the period, Sun said, the SAR government has been responding to the call, as shown by its funding allocations.

For his part, Henan Oriental Materials founder Wang Yongchao said the company planned to hire, besides technicians, more than 100 top-level talent locally.

He said the company had picked Hong Kong because, among many things, it enabled the firm to reach the international market, noting that guests at the ceremony came from southeast and central Asia.

Wang added that the SAR, as a global financial and talent hub, was an attractive location given his firm's expansionary efforts.

"The development of our hard technology enables capital investments to yield high and sustained returns, creating a very positive link-up. So Hong Kong's financial advantage immensely empowers us," he said.

"And then the talent here has an edge. There is also Hong Kong's role as an international hub and its connection with the world."

Wang said his company also planned to set up a design office in the Northern Metropolis.

He went on to say that as part of his firm's co-operative efforts with local universities, it had sent technicians to study here and they should graduate in around two years.


Edited by Tony Sabine