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US giant eyes mainland with HK connection

Yvonne Chan

United States-based ON Semiconductor has chosen Hong Kong as its Asia-Pacific headquarters, and plans to be located in Science Park.

ON had been in talks with executives from Cyber-Port and Science Park about the location of its headquarters, 'but the Science Park is very favourable for us', said Henry Leung, ON's general manager for Asia-Pacific.

He declined to disclose ON's planned investment in the Science Park, but said it would be finalised 'very soon'.

ON, which claims to be the world's biggest supplier of components used in semiconductors, was created in May after Motorola sold its Semiconductor Components for US$1.6 billion to US investment group Texas Pacific.

Motorola retained a 10 per cent share in ON, which operates manufacturing plants in Japan, Malaysia, the Philippines and a joint venture in Sichuan.

Steve Hanson, ON Semiconductor president, said Hong Kong had been chosen for the headquarters over other locations including Singapore because it 'provided a major gateway to the China market'.

'As the [mainland's] industry grows and builds up, we will consider [opening] other operations' in the mainland, he said.

Other factors that made the SAR favourable included its advanced telecommunications infrastructure, convenient transportation links, and reputable universities, Mr Hanson said.

ON's local operations, which is expected to employ about 115 people by the end of the year, will deal mainly with administrative functions.

The operations would be split between its offices in Tai Po and Kwai Chung until the Science Park was completed, Mr Leung said. The first phase of the project would be finished by 2001.

Secretary for Trade and Industry Chau Tak-hay, speaking at a reception yesterday hosted by ON, said the semiconductor company would be one of many technology firms drawn to Hong Kong by the Cyber-Port and Science Park projects.

TECHNOLOGY

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