Philips Electronics Hong Kong Limited Signs Major New Lease Agreement with Hong Kong Science and Technology Parks Corporation

HONG KONG – Hong Kong Science and Technology Parks Corporation (HKSTP) and Philips Electronics Hong Kong Ltd (Philips) announce the signing of a major lease agreement for facilities at the Science Park. The new location will house several of Philips’ business units including Consumer Electronics - Mobile Infotainment and business creation activities for Personal Infotainment and mobile phones, Home Entertainment Networks, Mobile Display Systems and Philips Design, currently located at different offices. The facility at Science Park will become the worldwide headquarters for Philips Mobile Infotainment and also the regional headquarters for Philips Design, one of the largest design studios in the world.

The lease covers approximately 83,000 sq. ft. of space in Building 7 at the Hong Kong Science Park. Philips will be the biggest European tenant of Science Park with 400 employees. Its sizable investment at Science Park will further Hong Kong’s reputation as a key technology hub in Asia.

“China’s electronics manufacturing industry is growing at a rapid rate and according to the PRC Ministry of Information will account for nearly one-third of the global electronics industry by 2005,” said C.D. Tam, Chief Executive Officer of HKSTP. “As companies like Philips establish their intellectual property related activities at the Science Park, Hong Kong will play a pivotal role in meeting that demand as a centre for product development/design and applied R&D close to the manufacturing base in the Pearl River Delta.”

From its location at the Science Park, Philips will conduct research and development activities in applied technologies for electronics products and components. Philips will also utilise the facility for business creation including market research, product creation and supply operations.

“The benefits of having Philips at the Science Park not only include the synergies between Philips and the Park’s electronics cluster but are also represented in terms of jobs creation and overall enhancement of Hong Kong’s technology competencies. As an anchor tenant, Philips will increase international awareness of world-class facilities, talent and unique attributes of Hong Kong in the technology market,” stated Tam.

Philips chose the Science Park location based on a number of key factors: such as the Park’s excellent work environment for product research and development, a highly skilled talent pool of top-level staff in Hong Kong, and the opportunity for Philips to contribute to the growing electronics cluster. For example, Philips Design helps to create a distinct look and feel for the Philips Group as well as other international clients with their award-winning product designs, user interfaces and consumer research. Philips’ Mobile Infotainment and Home Entertainment Networks develops portable audio products, flat-panel speaker systems, Bluetooth and WiFi devices, while Philips Mobile Display Systems creates innovative displays used in automobiles, mobile phones and PDAs.

“The Hong Kong Science Park provides a knowledge-based environment to facilitate interaction and innovation. Philips will continue to demonstrate its commitment to building technology competence in Hong Kong,” explained Mr Andreas Wente, CEO of Philips Electronics Asia Pacific.