With the hope to extract the chips from my normal-sized Octopus and made a smaller Octopus card, I search around on the net for a solution. I found one indeed but the size reduction is not promising at all.
Below link to the website for instruction (http://www.anpan2.ath.cx/eddy/index.php?fpath=main9.html). The card was soaked in thinner to dissolve the plastic cover from the circuit board.
Once that's done, the antenna was folded to reduced the card size. Due to the large size of the antenna, the overall size of the card could not be reduced much. The left picture below is the original circuit and the right one has the antenna folded (new size: 76 x 46mm).
If you really want a reduced size Octopus chips, the best is to get the one from the mini Octopus card or the Octopus watch. For me, I decided to abandon my original idea... both the mini Octopus and the Octopus watch are too expensive if the only purpose is to get the chips.
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Anna