Sun Dong: The Artificial Intelligence Research Institute will be put into operation in the second half of the year, and the New Industrial Acceleration Plan has already supported four projects

The Secretary for Innovation and Technology, Sun Dong, briefly introduced key measures related to promoting the development of innovation and technology at a press conference on the 2026-27 Budget held yesterday (26th).

In terms of improving the innovation and technology ecosystem, the Hong Kong Artificial Intelligence Research Institute will commence operations in the second half of the year to further support AI research and development and the transformation of results, as well as provide advice on governance frameworks and regulatory systems for AI development.

To promote AI+ development, the Financial Secretary will establish and chair the "AI+ and Industry Development Strategy Committee," which will initially focus on life and health and embodied intelligence. The budget will also allocate HKD 100 million to accelerate the government's digital transformation by introducing leading technologies and talents.

Another key area of development is life and health technology. The upcoming Life and Health Research Institute will adopt a "1+3" model, including a main institute located in the Hong Kong section of the Lok Ma Chau Loop and three branches jointly established by local universities.

In terms of new industrial development, the "New Industrialization Funding Scheme" has currently supported over 120 new smart production lines, driving over HKD 1 billion in private investment. The "New Industrial Acceleration Program" has announced support for four projects, involving a total investment of approximately HKD 2.5 billion, of which over 70% is private investment.

The budget announced the reservation of approximately HKD 220 million to build a National Manufacturing Innovation Center, which will be the first national-level innovation center established by the country overseas. The two pilot lines for the research and trial production of third-generation semiconductor chip technology at the Hong Kong Microelectronics Research Institute will commence operations within the year, promoting local chip research and development and industrial upgrading. Additionally, two semiconductor companies have received support from the "Acceleration Program" to build factories in Hong Kong, with a total investment exceeding HKD 1.5 billion. Research is underway on the medium- to long-term development of new industries in Hong Kong, with preliminary research results and corresponding policy measures expected within the year, and consultations with relevant Legislative Council committees will be conducted.

In the aerospace sector, the Hong Kong Space Robotics and Energy Center under InnoHK will participate in the national Chang'e 8 mission, with its developed multifunctional lunar surface operation robot having entered the initial testing phase for spacecraft. The relevant technology is also expected to be promoted for ground applications.

To encourage more upstream research and development activities, the government will study optimizing the tax arrangements related to current R&D expenditures. In the midstream, the government's HKD 10 billion "Industry-Academia-Research 1+ Program" has approved 49 projects, with related products set to be launched in the market successively. In the downstream, the government's HKD 10 billion Innovation and Technology Industry Guidance Fund aims to leverage market capital, with a total fund size expected to reach at least HKD 40 billion. Nearly 40 applications from fund managers have been received and are currently under selection, with the aim of starting operations within the year