Hambrecht & Quist, the finance house behind Hong Kong’s proposed $1.2bn Silicon Harbour semiconductor manufacturing project, has threatened to pull out unless the government endorses it by the fourth quarter of this year. Unless the administration agrees to tax incentives and favorable land lease by then, the schedule would be delayed and it would be difficult to proceed Hambrecht & Quist Asia-Pacific managing director Clarence Teng said. We hope the government will approve it by the fourth quarter, said Teng. Hong Kong has advantages and disadvantages. There are alternatives elsewhere to consider. Both sides are well aware of the end-of-the-year time frame.
If the project goes ahead projections are for it to generate 195,000 jobs and add $30bn to Hong Kong’s gross domestic product by 2008, figures which should get the government’s attention. It would concentrate on making advanced semiconductors and the hardware side of information technology.
