HONG KONG — From the first homegrown chip to the rapid rise in global innovation rankings, Hong Kong has accelerated its pivot toward innovation and technology (I&T) over the past year, positioning the sector as a critical new engine for growth alongside its traditional economic pillars.

In November, Hong Kong debuted the Lion Rock chip, the world's first data center management processor built on the open-source RISC-V architecture. The chip was incubated by Full Vision Capital, a Hong Kong investment firm.

The chip was produced by StarFive Technology, whose founding shareholder, Full Vision Capital, began backing the RISC-V architecture and StarFive seven years ago. At the time, the open-standard technology had few serious backers.

The early bet gave StarFive a first-mover advantage, but chip development remains a technically complex endeavor that is anything but easy.

"The design and manufacturing of chips involve an intricate division of labor, and any slip can lead to fatal defects," said Xu Tao, CEO of StarFive Technology.

Despite these hurdles, the company succeeded in its tape-out — a feat Xu credited to rigorous quality control and close team integration.

Alan Chan, managing partner of Full Vision Capital, said the achievement reflected the cultural heritage of Hong Kong."The resilient 'Lion Rock Spirit' of Hong Kong's tech innovators is a robust driving force behind the I&T sector," Chan said, pointing to a pragmatic, hardworking ethos in the local startup community.

Xu underscored that Hong Kong is endowed with several underlying strengths for chip development. "Chip design, a capital — and knowledge-intensive pursuit, aligns naturally with the city's status as an international education and financial hub capable of sustaining long-term funding for research and development," Xu said.

Chan added that the city's common law system, low-tax environment and strong intellectual property protections have combined to offer the stability needed for long-term and high-stakes innovation.

Bolstered by stronger government investment and efforts to attract companies, Hong Kong's I&T ecosystem has thrived in recent years. Official data showed that the city's domestic spending on R&D expanded 8.4 percent year-on-year to HK $35.77 billion ($4.6 billion) in 2024, with its ratio to GDP climbing further to 1.13 percent.

The policy push is delivering results. The Shenzhen-Hong Kong-Guangzhou innovation cluster topped the global list for the first time last year, while the tech-intensive Hetao high-tech zone's Hong Kong Park was officially launched in December, securing tenancy contracts with over 60 enterprises.

The city's growing I&T activity aligns with China's broader push to achieve greater self-reliance and sci-tech strength.

According to the recommendations for formulating the 15th Five-Year Plan (2026-30), Hong Kong will be given support in developing itself into an international innovation and technology center. Furthermore, the Central Economic Work Conference in December has explicitly listed building an international technological innovation center in the Guangdong-Hong Kong-Macao Greater Bay Area as among the priorities in 2026.

Hong Kong will align more proactively with the national development strategy, said Hong Kong Financial Secretary Paul Chan Mo-po, while also underscoring finance, innovation and technology, and trade as three important growth engines for Hong Kong for 2026.

Xinhua