Hong Kong boosts AI drive; Arm unveils chip for IoT devices

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Hong Kong is exploring the potential of advanced artificial intelligence (AI) capabilities and is investing in the development of the local ecosystem and its integration into public services.

While the region is keen on broad AI development, most of its initiatives are centered around Cyberport, Hong Kong’s digital business hub. The unveiling of Cyberport’s 2025-2026 budget confirms the city-state’s intent to transform the region into a key hub for emerging technologies in Southeast Asia.

A brief examination of the budget shows significant spending by the Chinese Special Administrative Region on AI. Cyberport has secured HKD1 billion ($125 million) to establish the Hong Kong AI Research and Development Institute, which will take the lead in pioneering cutting-edge study and development efforts.

“The institute will focus on facilitating upstream R&D, transforming midstream and downstream R&D outcomes, and expanding application scenarios,” read the press release.

Furthermore, a lump sum will be earmarked to increase Cyberport’s computing power to an impressive 3,000 petaFLOPs annually. This expansion will serve as the foundation for ecosystem development in Hong Kong, allowing it to compete with the rest of the world.

Furthermore, an additional HKD3 billion ($375 million) AI Subsidy Scheme (AISS) is designed to fund research and development efforts for large language models (LLMs).

A HKD10 billion Innovation and Technology Industry-Oriented Industry Fund is expected to inject capital into the local AI ecosystem. According to a press release, the fund will increase the capital raised by Cyberport’s technology firms to well over HKD42.1 billion ($5.4 billion) before the end of the year.

“Cyberport invests in start-ups and helps them secure additional funding, with the accumulated co-investment amount reaching HK$1.94 billion and a co-investment ratio of 1.9,” read the statement.

Cyberport is home to a diverse range of companies, including AI firms, Internet of Things (IoT) enterprises, and blockchain service providers. It has nearly 300 Web3 companies and an additional 350 experimenting with AI and IoT in a multifaceted digitization strategy.

Currently, the hub is focused on a series of training initiatives aimed at enhancing the talent pool for emerging technology companies in Cyberport. Additionally, there are plans to improve the ease of doing business metrics in Hong Kong, working alongside financial institutions and regulators.

South Korea pushes for AI-IoT integration

Arm Korea President Hwang Seon-wook, in a press conference, revealed the technical specifications of the new Edge platform, including leveraging an advanced Cortex-A320 CPU and Arm’s third-generation neural processing unit (NPU) Ethos-U85.

Other internal components of the platform feature top-of-the-line offerings from Arm while providing solutions to ease interoperability with IoT devices.

“In the areas of smart homes, smart cities, and industrial automation, the importance of edge AI has grown, and device makers are expecting Arm to drive the entire ecosystem,” said Hwang. 

When compared to previous offerings, the Armv9 Edge AI platform demonstrates a substantial advancement in capability. Early tests reveal that the latest platform is eight times more efficient than the previous platform built with Cortex-M85 in 2024.

With its superior machine learning performance and new Cortex-A320 chip, Arm says the platform has advanced IoT functionalities. Hwang emphasized that the case’s distinguishing aspect lies in the new chip’s energy-saving features, effectively completing Arm’s CPU portfolio for enterprise applications.

As the platform inches closer to a commercial rollout, Hwang dodged questions about product pricing amid rumors of a 300% licensing fee hike in South Korea.

“We have many customers in Korea using our Arm solutions – the proportion of users in Korea is probably the highest in the world,” said Hwang. “Startups are building and validating their solutions and products on this foundation, developing competitive products, and using that as a stepping stone to enter the global market.”

While South Korea gradually embraces blockchain technology, the country is making a strong foray into AI. A hefty $7 billion investment in 2024 underscores the country’s commitment while eyeing mainstream applications in public services.

Conversely, private enterprises are hurtling toward AI, with Naver Corp and telecom giant KT sinking sizable sums into building AI infrastructure. OpenAI CEO has urged the country to increase its investment in chip development to get ahead of the AI race.

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