[🇧🇩] Semiconductor Industry in Bangladesh

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Boosting semiconductor industry could propel Bangladesh to forefront of technology, progress: Palak

State Minister for Posts, Telecommunications & Information Technology Zunaid Ahmed Palak on Thursday said that boosting the semiconductor industry could propel Bangladesh to the forefront of technology and progress. Palak said this while addressing the launching of the strategic document of

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Boosting semiconductor industry could propel Bangladesh to forefront of technology, progress: Palak
Published :
Jul 11, 2024 21:25
Updated :
Jul 11, 2024 21:25

State Minister for Posts, Telecommunications & Information Technology Zunaid Ahmed Palak on Thursday said that boosting the semiconductor industry could propel Bangladesh to the forefront of technology and progress.

Palak said this while addressing the launching of the strategic document of the Metropolitan Chamber of Commerce and Industry (MCCI) titled "Developing the Semiconductor Industry in Bangladesh" as chief guest at the MCCI office here.

Md Shamsul Arefin, Secretary, Information and Communication Technology Division attended the function as special guest. The event was moderated by MCCI secretary general and CEO Farooq Ahmed.

The State Minister said that the country's engineers need proper training for the development of the semiconductor industry, BSS reports citing an MCCI press release.

He said it is possible to create some 10,000 experts in the country over the next one decade through imparting proper training on microchip, designing, semiconductor, basic AI and future frontier technology.

Palak informed that a state-of-the art Nano lab would be set up on BUET campus through spending around $10 million.

He commended MCCI for its proactive initiative in launching the report.

The State Minister said artificial intelligence, microchip designing, robotics, and cyber security were already identified as the four frontier technologies and focus areas by the Prime Minister's ICT Affairs Adviser Sajeeb Wazed Joy.

Before concluding, he assured of his ministry's full support in ensuring Bangladesh's progress in the semiconductor industry.

The MCCI's report serves as a roadmap for potential investors and policymakers, guiding them on the path to developing the semiconductor industry in Bangladesh.

It also referred to the current global leaders in semiconductor design and fabrication, providing valuable insights into their ecosystem.

Md. Shamsul Arefin mentioned that it was high time for making a broad commitment to a high-tech future targeting the high economic growth.

For the semiconductor industry to flourish, he stressed the need for having a comprehensive national policy, tax breaks and subsidies, strengthened intellectual property laws and their enforcements, the availability of clean rooms, testing laboratories, manufacturing facilities, and the promotion of locally manufactured semiconductor chips.

While delivering the welcome remarks, MCCI President Kamran T. Rahman highlighted the MCCI's efforts to support the semiconductor industry in Bangladesh.

He stated that the semiconductors were crucial for future industrial ventures. "Through this report, MCCI aimed to make a significant contribution to that cause." he added.

A presentation was given by Dr. Yusuf Haque, Chief Technology Officer and Co Founder, eXo Imaging Inc. (USA), on how to bring semiconductor related technology to Bangladesh.

Dr. M. Rokonuzzaman, Professor, Department of Electrical & Computer Engineering, North South University, gave a presentation highlighting the key features of the report. He believed delving into the industry could help Bangladesh evade the middle-income trap while pursuing progress.

During his intervention, MCCI Senior Vice-President Habibullah N. Karim said that the report will be more than an academic guide for the semiconductor industry.

"It will also provide guidance on mobilizing investment, policy frameworks, and resources," he added.

Karim also expressed great optimism regarding the industry's potential to reach a billion-dollar valuation. Through this report, MCCI aimed to encourage more individuals to join the semiconductor industry and nurture a supportive ecosystem.

An open discussion also took place during this part of the event.

Topics that came up for discussion include the kinds of skills required for the semiconductor industry, having regular monitoring and evaluation of the set objectives, the availability of research and development grants with tax rebates, the setting up of a lead agency responsible for the implementation of the plans involving all stakeholders, the development of Bangladesh's own intellectual property in the semiconductor industry, the 'brain drain' challenge, and the accommodation of local metallurgical engineers in the semiconductor industry.

Distinguished individuals from academia, the business community were present at the event.​

 

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Experts identify challenges for semiconductor industry

A study has identified several risk factors for the development of the semiconductor industry in Bangladesh.

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Experts identify challenges for semiconductor industry

A study has identified several risk factors for the development of the semiconductor industry in Bangladesh.

A lack of understanding of industry dynamics, weak decisions in adapting to unfolding scenarios, excessive reliance on incentives and subsidies, and generic human resource development are among the major risk factors.

Also included are the disproportionate dependence on wage differential and infrastructure, lack of synchronisation and synergy in actions resulting in weak specialisation, weak focus on technology, innovation and research and development (R&D), and a lack of performance-centric incentives and disciplinary actions.

The better performance of competing countries was also outlined as one of the risk factors in the study, titled "Developing Semiconductor Industry in Bangladesh", which was made public by the Metropolitan Chamber of Commerce and Industry (MCCI) in Dhaka yesterday.

It recommended offering education and training with the assistance of industry experts to existing students and graduates in electrical engineering, computer science and engineering, and physics to increase the supply of chip designers.

It also asked to offer research and development grants as well as fellowships at the master's and PhD levels to support the development of microchip design-related intellectual properties, process node migration, and prototype microchips.

The study also advised to offer incentives to local producers, particularly in the apparel, shoes, and farming sectors, for pursuing microchip-led incremental innovation for their products and processes and support linkage with academia and chip design entities.

Bangladesh has the opportunity to export $10 billion worth of semiconductors by 2041 and take the sector's contribution to the GDP from the current 0.3 percent to 4.5 percent.

Semiconductors are the fourth most-traded products in the world after crude oil, motor vehicles and their parts, and refined oil.

Global semiconductor industry sales totaled $526.8 billion in 2023, a decrease of 8.2 percent compared to $574.1 billion a year ago, the highest ever, according to the Semiconductor Industry Association.

The semiconductor business is projected to become a $1 trillion industry by 2030, which presents a huge opportunity for Bangladesh.

The country can utilise its supply of talent to create high-earning prospects for graduates and diversify foreign earnings as a shortage of skilled manpower in this sector has been projected.

For instance, by 2030, experts estimate there will be a shortage of 67,000 workers in this industry in the US alone.

Currently, there are three firms in the chip design segment in Bangladesh. These companies employ around 400 chip designers, generating over $6 million in revenue.

The only chip testing firm is Luna Lighting, which is fully owned by a Japanese company.

Zunaid Ahmed Palak, state minister for the Ministry of Posts, Telecommunications and Information Technology, Md Shamsul Arefin, secretary to the Information and Communication Technology Division of the Ministry of Posts, Telecommunications and Information Technology, were among those present.

Farooq Ahmed, secretary-general and CEO of MCCI, moderated the event, where Kamran T Rahman, MCCI president, and Simeen Rahman, MCCI vice-president, also spoke.

Yusuf Haque, chief technology officer and co-founder of eXo Imaging Inc., presented the keynote paper.

M Rokonuzzaman, a professor of the department of electrical and computer engineering at North South University, gave a presentation.

Habibullah N Karim, senior vice-president of MCCI, said the report would serve as more than an academic guide for the semiconductor industry because it also provides guidance on mobilising investment, policy framework, and resources.​

 

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Patronise semiconductor industry to prevent brain drain, says MCCI

The country should nurture its semiconductor industry to prevent the outflow of educated and skilled professionals, according to stakeholders, as they outlined a roadmap requiring investment, university partnerships, joint ventures and venture capital to help Bangladesh tap a market valued at alm

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Patronise semiconductor industry to prevent brain drain, says MCCI
FE REPORT
Published :
Jul 12, 2024 10:55
Updated :
Jul 12, 2024 10:55

The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), launched the strategic document titled "Developing the Semiconductor Industry in Bangladesh" at its Gulshan office in Dhaka on Thursday. Zunaid Ahmed Palak, State Minister for Posts, Telecommunications and Information Technology was present as the chief guest virtually while Md. Shamsul Arefin, Secretary, Information and Communication Technology Division of the ministry attended as special guest.

The country should nurture its semiconductor industry to prevent the outflow of educated and skilled professionals, according to stakeholders, as they outlined a roadmap requiring investment, university partnerships, joint ventures and venture capital to help Bangladesh tap a market valued at almost $600 billion.

They made these points at a report launching ceremony on semiconductors -- the world's fourth-most-traded commodity.

The Metropolitan Chamber of Commerce and Industry (MCCI) organised the programme in Dhaka on Thursday.

State Minister for Posts, Telecommunications and Information Technology Zunaid Ahmed Palak was the chief guest.

Information and Communication Technology Division Secretary Md Shamsul Arefin was the special guest.

MCCI President Kamran T Rahman welcomed attendees and Senior Vice President of the elite trade body Habibullah N Karim provided a context of the industry.

A report titled 'Developing the Semiconductor Industry in Bangladesh' was launched at the programme.

State Minister for ICT Zunaid Ahmed Palak said the government has a goal of running 12 university projects, creating 200 mentors and developing the skills of 2,000 students to tap the potential of the semiconductor industry.

To achieve this goal, ICT Secretary Shamsul Arefin said a comprehensive strategy with a timeline is needed. "State-of-the-art infrastructure, testing labs and a manufacturing hub are also required for this industry," he added.

MCCI President Kamran T Chowdhury urged the government to offer incentives, protect intellectual property rights and foster partnerships to become a significant player in the global semiconductor industry.

Dr Yusuf Haque of eXo Imaging Inc, California, USA, joined the programme virtually.

To tap the industry's potential, he suggested designating specific GDP allocation and institutionalising research and development.

Dr Haque also called for developing the workforce at SCALE -- a preeminent US programme for semiconductor workforce development. He also advocated for incentivising venture capital and prioritising joint ventures with proactive government support.

Dr M Rokonuzzaman, professor of electrical and computer engineering at North South University, recommended the government provide grants for research and innovation in local microchips, integrate industries and develop small-scale university foundries.

MCCI Senior Vice President Habibullah N Karim said investment and resource mobilisation should be focused on nurturing a thriving semiconductor industry in Bangladesh.

"We have already had success. Bangladeshi Ulkasemi and Neural Semiconductor have employed several hundred people who are designing chips for global giants," he said.

However, he cautioned that the success of one or two companies does not guarantee the country's overall success in this sector. "We can see a reverse brain drain in Bangladesh if we can support the semiconductor industry."

Former president of Bangladesh Association of Software and Information Services (BASIS) Almas Chowdhury said Bangladesh needs its own intellectual property (IP) and tax rebates for research and development in this sector.​

 

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The prospects of semiconductor industry of Bangladesh.

 

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Semiconductors can be the new RMG

Bangladesh's endeavour to become a knowledge-based economy has already gained significant momentum.

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Semiconductors can be the new RMG

Semiconductors can be the new RMG. Photo Reuters

With the consistent growth of our IT sector in recent years, Bangladesh's endeavour to become a knowledge-based economy has already gained significant momentum. While labour-centric sectors like the ready-made garment (RMG) industry remain a key driver in our economy, it is important now to expand the focus to skill-intensive sectors so that we can stay globally competitive and can create employment for the educated masses. The emerging semiconductor industry can play an instrumental role in this regard.

It may sound like an overstatement to say that the semiconductor industry has the potential to gain the same status as the RMG industry in the future. However, in view of the global and local prospects of this booming industry, we can definitely hope to witness such a scenario.

A lifeline for all electronic devices and systems, the global semiconductor industry is set to grow exponentially in the coming decade. According to Precedence Research, the market value of this industry stands at $664.2 billion at present, and is expected to rise to over $1.88 trillion by 2032, reflecting a remarkable compound annual growth rate (CAGR) of 12.28 percent.

Bangladesh currently earns around $5 million annually from the semiconductor industry, mostly by providing integrated circuit (IC) designing services, while high-end services such as fabrication, packaging, assembly, and testing remain untapped by local semiconductor companies. But our achievement is not negligible either. Virtually non-existent two decades ago, the nascent industry has gained traction rapidly in recent years. If the revenue has been able to reach $5 million over such a short period, we can definitely set our sights high and hope for the semiconductor industry to catch up with the RMG industry in the long run.

Most importantly, our demographic dividend is already a big advantage for this endeavour. A country with a 28 percent youth population, Bangladesh sees around 20,000 students graduate with computer engineering and electrical and electronic engineering (EEE) degrees every year.

Most importantly, our demographic dividend is already a big advantage for this endeavour. A country with a 28 percent youth population, Bangladesh sees around 20,000 students graduate with computer engineering and electrical and electronic engineering (EEE) degrees every year. If trained properly, they can provide the necessary fuel for the growth of semiconductor industry.

However, a series of challenges stand in our way of achieving this goal, the biggest being the massive investment required for its development. Like most tech-based sectors, the semiconductor industry is highly capital-intensive, making it extremely challenging for companies to expand operations without the government's support.

Considering the immense potential of this sector, many countries around the world have taken initiatives to grow their respective semiconductor bases. For instance, the Indian government launched a programme named Semicon to promote the production of semiconductors in the country, with an incentive of 76,000 crore rupees. In order to take our industry forward, the Bangladesh government should mull over similar steps for the days to come. It can also accelerate semiconductor expansion by initiating bilateral dialogues with experts such as Taiwan, South Korea, and Japan.

The lack of an adequately trained workforce is another key challenge for the country's semiconductor industry. Back in 2007, I started Ulkasemi in Bangladesh with only four engineers. Creating a pool of trained professionals in line with our gradual expansion was a Herculean task. The workforce problem mainly stems from the lack of hands-on experience of our engineering students. Their academic knowledge of semiconductors is not sufficient to meet the professional requirements in the industry. Therefore, rigorous training is necessary to turn them into competent professionals.

The most effective way to overcome this challenge is to strengthen government-academia-industry collaboration. By engaging with academia, semiconductor experts can encourage students to take an interest in the field. It is equally important to include semiconductor-related topics such as advanced-level VLSI courses in the students' academic curriculum so that they can develop their knowledge of IC design, production, packaging and fabrication at an earlier stage.

The government recently declared its ambition to build a $10 billion semiconductor industry by 2031. If provided with the necessary support, Bangladesh's semiconductor industry could even surpass this target. The kind of support the RMG industry received during the 1980s-1990s, such as subsidies for electricity and gas supply, can lend impetus to our industry.

Currently, over $40 billion in gross revenue is earned annually by Bangladesh's RMG industry. However, it requires five million workers to generate this revenue, whereas the semiconductor industry could earn the same amount by employing only around 100,000 engineers. It shows the tremendous potential Bangladesh has in this thriving industry. It is high time we started shaping it as our gateway to a knowledge-based economy and a prospective alternative to the long-serving RMG industry.

Mohammed Enayetur Rahman is the founder, CEO, and president of ULKASEMI.​

 

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Ulkasemi Bangladesh is designing Apple, Meta, Google chips.



Bangladeshi Researcher Dr. Nadim Chowdhury (who completed his Ph.D from MIT) discusses SSD and VLSI semiconductor design at BUET Dhaka (where he currently teaches)

 

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CMOS characteristics discussed by Dr. Nadim Chowdhury at BUET

 

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Malaysia can help us enter chip industry

Bangladesh can join hands with Malaysia to develop a sector that caters to global semiconductor industries, which can play a vital role in increasing export earnings, said Shabbir A Khan, president of the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI).

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Malaysia can help us enter chip industry
Says trade body president

Shabbir A Khan

Bangladesh can join hands with Malaysia to develop a sector that caters to global semiconductor industries, which can play a vital role in increasing export earnings, said Shabbir A Khan, president of the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI).

Malaysia has such a sector, which is drawing a lot of attention but which lacks skilled engineers, for which it has opted for hiring the experts from abroad, he said during an interview with The Daily Star yesterday.

The semiconductor industry is an aggregate of companies engaged in the design and fabrication of semiconductors and semiconductor devices, such as transistors and integrated circuits, he said.

The industry can be divided into three major parts—designing, engineering and packaging, said Khan.

Bangladesh is capable of engaging in designing and engineering while Malaysia is skilled in packaging. If the two countries join hands, both can do better, he said.

On the other hand, a huge number of engineers are graduating from Bangladesh every year. If they can be trained, their skills can be put to good use in the sector, he said.

In 2030, the market size of the semiconductor industry will cross $1 trillion worldwide. So, this sector bears a huge potential for both countries, he added.

As global semiconductor giants are now shifting their manufacturing hubs from Taiwan to Malaysia, it is the best option to target, pointed out Khan, who is also the chief executive officer of Khan & Deen Traders.

Visiting Bangladesh on Friday, Malaysian Prime Minister Anwar Ibrahim had held talks with Prof Muhammad Yunus, chief adviser to the interim government, regarding this sector alongside others, he said.

Recently, a delegation of the BMCCI also held discussions with Malaysia Digital Economy Corporation regarding knowledge and expertise exchange to develop a robust digital economy in Bangladesh, he said.

The BMCCI has taken to promoting the semiconductor sector as it has realised that both countries have the potential to grow through it, he claimed.

Malaysia is a major player in the semiconductor industry, accounting for 13 percent of global testing and packaging. It has attracted multibillion-dollar investments from leading firms in recent years, including Intel and Infineon, said Khan.

Bangladesh is also working on signing a free trade agreement (FTA) with Malaysia to reduce trade barriers, which would increase garment exports and thereby benefit the economy, he said.

At present, Malaysia has an FTA with China, using which the latter exports a high volume of garments to the Southeast Asian country. Once Bangladesh signs its FTA, it will be able to take over the market, he added.

As the world's sixth-largest semiconductor exporter, Malaysia commands a 7 percent share of the global market and accounted for 23 percent of the US semiconductor trade in 2022, said Khan.

However, many Malaysian companies, especially small and medium enterprises, still depend on skilled foreign labour and are hesitant to adopt automation, he said.

Despite this, Malaysia's semiconductor industry has fostered successful local companies specialising in automation solutions, forming a resilient supply chain, he added.

There is a huge shortage of skilled engineers and Malaysia has been currently outsourcing engineers from developed countries, he added.

Once Bangladesh starts focusing on developing the semiconductor sector, it will emerge as a new frontier for high-tech manufacturing, said Khan.

"Our current industry setup is limited to only the integrated circuit design. But if we can enter the semiconductor ecosystem, Bangladesh's foreign exchange earnings from the semiconductor industry may hit the turnover of RMG (readymade garment) sector," he said.

Sectors like garments, pharmaceuticals, leather and leather goods and home textiles are getting special attention through policy support from the government so that they can reach the billion-dollar mark in exports, he said.

If the semiconductor industry gets similar attention, it will indeed surpass the $10 billion-mark by 2031, hoped Khan.

The Malaysian government has proactively addressed the shortage of skilled workers by relaxing conditions regarding foreign labour in the semiconductor, electronics and electrical sectors, he said.

This reflects a recognition of the immediate need for skilled manpower to support industry growth, he said.

Collaboration between Bangladesh and Malaysia offers a promising opportunity to tackle skilled labour challenges in the high-tech industry. By leveraging each other's strengths, both countries can work towards mutually beneficial solutions, he added.​

 

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Govt to form taskforce for semiconductor industry

A high-level taskforce will work with Bangladesh Investment Development Authority (Bida) to formulate a roadmap for the development of a semiconductor sector, focusing on testing, assembly and scaling up capabilities. .The decision was taken at a meeting titled “Semiconductors – A New Fro

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Govt to form taskforce for semiconductor industry
Bida adds four new services to OSS portal

A high-level taskforce will work with Bangladesh Investment Development Authority (Bida) to formulate a roadmap for the development of a semiconductor sector, focusing on testing, assembly and scaling up capabilities.

The decision was taken at a meeting titled "Semiconductors – A New Frontier for the Bangladesh Economy and Employment" among stakeholders organised by Bida at its headquarters in the capital today, said a press release.

"We are forming a taskforce with representatives from industry, academia, the diaspora, and government to identify barriers and recommend actionable solutions," said M Siraz Uddin Miah, principal secretary to the chief adviser, while presiding over the meeting.

"I urge stakeholders to leverage Bida as a one-stop platform to align government policies and priorities," he said.

Mashuque Rahman, founder of Green Quest, delivered the keynote presentation, highlighting priority areas within the semiconductor value chain and recommendations for growth.

"Bangladesh currently generates approximately $6 million annually from semiconductor activities, primarily through integrated circuit design services," said Ashik Chowdhury, executive chairman of Bida and Bangladesh Economic Zones Authority.

However, the downstream stages of packaging, assembly, and testing offer immediate opportunities for expansion, he said.

"Based on today's discussions, our next steps will focus on policy development, promotion, and capacity building," he added.

"Besides updating our university curricula, we have to enhance our style of teaching and make sure our students are taking the knowledge home," said Mohammed Enayetur Rahman, founder and CEO of ULKASEMI, a Silicon Valley-based semiconductor design services company.

"We are willing to engage further with university students to help them understand the job description," he said.

The speakers provided a list of recommendations, including ensuring intellectual property protections, introducing semiconductor-focused courses in select universities, introducing shared training facilities and engaging non-resident Bangladeshis for global promotion.

Shish Haider Chowdhury, secretary to the ICT division, and Maj Gen Md Nasim Parvez, commandant of the Military Institute of Science and Technology, along with representatives from PrimeSilicon Technology, Tahoe Communications, Neural Semiconductors Limited, Haison International Limited, Integrated Development Foundation, BRAC University, and Southeast University were also present.​