Hong Kong Sharpens Chip Strategy with Focus on RISC-V and Third-Generation Semiconductors

As global semiconductor supply chains shift from centralized manufacturing to distributed innovation, Hong Kong is rapidly emerging as a key player. Backed by government policy, growing market demand, and regional synergies within the Greater Bay Area, the city is strategically investing in RISC-V architecture and third-generation semiconductor technologies—two of the most promising tracks in the chip industry today.

Hong Kong Bets Big on RISC-V: Strategic Investment in StarFive

At the recent Hong Kong RISC-V Development Summit, the Hong Kong Investment Corporation (HKIC) announced a strategic investment in StarFive, a leading RISC-V chip company. As part of the agreement, StarFive will establish a Hong Kong subsidiary and expand its R&D and commercial activities in the city.

The move signals Hong Kong’s ambition to build a homegrown RISC-V innovation ecosystem. StarFive plans to deepen local collaboration, launch high-performance RISC-V chips, and drive digital transformation in sectors including smart cities, IoT, and industrial automation.

Already, StarFive is working with Fusion Tech (HyperFusion) on deploying its data center-class "Lion Rock" RISC-V chips, and with China Mobile Hong Kong, The Hong Kong and China Gas Company, and China Mobile’s chip division to roll out the “GangHua Chip”—a secure RISC-V IoT chip aimed at smart gas management. Over 4 million units have already shipped in mainland China.

Why RISC-V Matters

RISC-V is a free, open-source, and highly customizable Reduced Instruction Set Computing (RISC) architecture. As the world’s third major chip architecture, RISC-V offers Chinese companies a path around x86 and ARM licensing restrictions—making it strategically crucial for technological independence.

According to Hong Kong Financial Secretary Paul Chan, RISC-V's open nature gives local R&D teams greater flexibility to innovate, helping Hong Kong position itself as a hub for international tech cooperation and next-gen semiconductor development.

Hong Kong Accelerates Third-Gen Semiconductor Manufacturing

Beyond RISC-V, Hong Kong is also making bold moves in third-generation semiconductors—materials like silicon carbide (SiC) and gallium nitride (GaN) that outperform traditional silicon in high-power and high-frequency applications.

In January, Jetlex Semiconductor signed a memorandum of understanding with the Federation of Hong Kong Industries to build Hong Kong’s first 8-inch SiC wafer fab. The plant, with a planned HK$6.9 billion investment, is set to begin operations in 2026, with an annual capacity of 240,000 wafers—enough to supply 1.5 million EVs per year.

Additionally, the Hong Kong Microelectronics Research and Development Institute (MRDI) is establishing two new pilot lines for SiC and GaN technologies. Funded by HK$2.84 billion from the Legislative Council, the MRDI will focus on bridging R&D and manufacturing, working closely with academia and industry to foster local innovation.

Strategic Outlook: From Niche to Necessary

With a globally integrated finance system, top-tier research institutions, and strong government support, Hong Kong is carving out a strategic niche in chip innovation. By doubling down on RISC-V and third-generation semiconductor manufacturing, the city is positioning itself as a tech-forward, self-reliant semiconductor hub within the Greater Bay Area and beyond.

As Hong Kong continues to attract top-tier investments and industry players, its chip sector is expected to play an increasingly critical role in the global semiconductor supply chain—from powering smart cities to enabling future AI breakthroughs.