[🇧🇩] Semiconductor Industry in Bangladesh

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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.​

 

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Bangladesh Semiconductor Industry Owners' Association begins operation​

Photo: Collected

Photo: Collected

Owners of semiconductor or microchip industries in Bangladesh have formed a new organisation, naming it the Bangladesh Semiconductor Industry Association (BSIA).

A nine-member committee has recently been formed through elections to lead the organisation.

For the 2024–2027 term, M A Jabbar, managing director (MD) of Neural Semiconductor Limited and DBL Group, has been elected as the president of the association.

M E Chowdhury Shameem, MD of MARS Solution Limited, has been elected as the senior vice president.

Additionally, Mizanur Mohammad Rahman, CEO of Teton Private Limited, has been elected as vice president (Administration), while Mojahedul Haque Abul Hasanat, chief technical officer of Dynamic Solution Innovators, has been elected as vice president (Finance).

The remaining five members of the committee are directors.

They include Alia Shafqat, MD and CEO of Taho Private Limited; Mohammad Alam, MD of MetroScientific; Munir Ahmed, director of iTest Bangladesh Limited; Kamrul Ahsan Dewanji, MD of Balu Technologies Limited; and Ashiqur Rahman Tanim, CEO of Think Global Limited.

Speaking about the newly formed association, the newly elected president of BSIA, M A Jabbar, said that the organisation aims to align local entrepreneurs with the growth of Bangladesh's semiconductor industry and global technological trends.

BSIA will encourage innovation, growth, and collaboration within the country's semiconductor sector, paving the way for Bangladesh to establish a competitive position in the global market, he added.

 

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Taskforce led by Bida formed for semiconductor sector

Bida executive chairman will head the 13-member taskforce

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Taskforce led by Bida formed for semiconductor sector
Bida executive chairman will head the 13-member taskforce

The government has approved the formation of a national taskforce to develop Bangladesh's semiconductor sector, which will be led by the Bangladesh Investment Development Authority (Bida).

This landmark initiative aims to enhance the country's expertise in chip design, testing, and assembly, capitalising on its strategic location, competitive labour costs, and skilled workforce, according to a letter issued by the press wing of the Chief Adviser's Office.

"Bangladesh's position in the Asia-Pacific supply chain and its young talent pool make it a key player for global semiconductor growth," said Ashik Chowdhury, executive chairman of Bida and Bangladesh Economic Zones Authority (Beza).

The 13-member taskforce will address policy gaps, recommend incentives, and identify immediate opportunities to attract international investment.

It is tasked with presenting actionable outcomes by January's end.

Prominent members include Mohammed Enayetur Rahman, CEO of Ulka Semi, and Istak Ahmmed, chairman of Prime Silicon Technology (BD) Ltd.

Additional experts include Prof Dr ABM Harun-ur-Rashid from Bangladesh University of Engineering and Technology; Maj Gen Md Nasim Parvez of Military Institute of Science and Technology, and global semiconductor specialists like Mustafiz Choudhury of Silicon Valley.

The taskforce's member secretary, Nahian Rahman Rochi of Bida, will coordinate the initiatives to ensure timely and impactful results.

This approval signals a pivotal moment for Bangladesh in establishing itself as an emerging player in the global semiconductor industry.​

 

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Can Bangladesh become a key player in the global semiconductor industry?

While building fab facilities and manufacturing chips may require a huge sum of investment and time, there is another field that launched Bangladesh into the stage of the semiconductor industry - the VLSI (Very Large-Scale Integration), a process for creating complex ICs by designing...

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Can Bangladesh become a key player in the global semiconductor industry?

The semiconductor manufacturing industry is a niche and well-guarded industry, one that requires highly trained personnel as well as costly equipment. Image: Representational image by DragonImages

Semiconductors—small chips which can control the flow of electricity hide in plain sight inside our smartphones, computers, laptops, televisions, and air conditioners— are in almost any electronic device that one can think of. These tiny marvels form the foundation of virtually every modern innovation, which means that with the growing usage of electronic products, the semiconductor market - also called the 'chip market' - will scale up, offering tremendous potential for countries, businesses, engineers, and consumers alike.

According to a recent report by Fortune Business Insights, a global market research firm, the global semiconductor market size was valued at USD 611.35 billion in 2023 and is projected to grow from USD 681.05 billion in 2024 to USD 2062.59 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 14.9% during the forecast period of 2024-2032.

However, the semiconductor manufacturing industry itself is a niche and well-guarded industry, one that requires highly trained personnel as well as costly equipment.

Building semiconductor fabrication plants - also known as fabs - is a capital-intensive endeavour, requiring billions of dollars in investment. These costly facilities manufacture integrated circuits (ICs) from raw silicon wafers, requiring advanced manufacturing tools, a clean environment with suits for workers, fan filter units, and a supply chain for raw materials.

While building these fab facilities and manufacturing chips may require a huge sum of investment and time, there is another field that launched Bangladesh into the stage of the semiconductor industry - the VLSI (Very Large-Scale Integration), a process for creating complex ICs by designing semiconductor chips.

Current industry status in Bangladesh

The domestic semiconductor industry is still in its infancy in this country. While large-scale chip fabrication or testing facilities are absent, the sector is dominated by a few companies focusing on design and simulation.

A paper published by the Metropolitan Chamber of Commerce and Industry (MCCI) in July 2024 titled 'Developing the Semiconductor Industry in Bangladesh', mentions two chip-designing firms, Ulkasemi and Prime Silicon, which were launched back in 2007. The paper also states that the industry of around 400 local chip designers now earns USD 6 million in export revenue.

Given Bangladesh's ongoing success in freelancing and IT outsourcing, the country is well-positioned to extend this model to semiconductor design services. With the right training and infrastructure, Bangladeshi engineers could contribute to global semiconductor projects, particularly in chip design and verification.

Educational foundations

As a niche sector, semiconductor manufacturing requires specialised knowledge and academia in Bangladesh, which has a growing interest in semiconductor engineering within its academic institutions.

Many universities have introduced courses on VLSI and microelectronics. These courses provide a theoretical grounding in semiconductor design, though practical exposure remains limited.

Dr Md Mostofa Akbar, Professor of the Department of Computer Science and Engineering (CSE) at BUET said, "I started teaching about VLSI at an undergraduate level from 1996. However, VLSI courses did not become popular as there was no related work in Bangladesh. But we are planning to buy equipment which will be helpful for the students."

Highlighting the importance of VLSI designing in regard to the semiconductor industry situation in Bangladesh, Professor Mostofa added, "There are four parts to semiconductor manufacturing - design, testing, structural verification, and fabrication. Most firms in Bangladesh focus on structural verification, but we need to give more attention to designing and testing if we want a sustainable ecosystem for this sector. The rise of AI and automation will soon shrink the opportunities for manual structural verification."

"Design, testing, and structural verification mostly use software meanwhile, and in the case of chip fabrication, we need high-end facilities. Taiwan produces the best chips. However, it is unlikely for them to share their proprietary knowledge," shared Professor Mostofa. He added, "The government needs to coordinate with Bangladeshi expatriates so that Bangladesh can get more work and outsource in this sector. Proper investment and resource mobilisation is also crucial."

Competitions like VLSITHON, organised by Ulkasemi, a semiconductor design services company in Bangladesh, are stepping stones for young engineers to apply their knowledge. The 2nd edition of VLSITHON focused on RTL (Register Transfer Level) design and Analog design, and attracted 235 participants from 20 universities, highlighting the latent talent pool in Bangladesh.

Regarding the purpose behind the competition, Mohammad Enayetur Rahman, CEO and President of Ulkasemi, said, "Our main purpose is to create resources in this sector by making students aware. We understand that a lot of the universities in Bangladesh do not have any dedicated professors or courses for this sector. So, we are trying our best to make more people aware of the semiconductor industry in Bangladesh."

"We have been working in this sector for 17 years and we aspire to make Bangladesh stand out in the chip industry. Through competitions like these, we offer opportunities and jobs for students who want to pursue a career in this sector," said Enayetur.

About the industry practices, Dr Satyendra Nath Biswas, Professor of Electrical and Electronics Engineering (EEE) at Ahsanullah University of Science of Technology (AUST) said, "The main problem is keeping talents in Bangladesh. For example, an engineer with 3 to 4 years of experience in this sector gets 5 times more salary in the US compared to Bangladesh. India also pays 3 times more than Bangladeshi firms. Not just about industry-standard payments but the quality of life is also a big issue for some if we think about the existing problems like the security of life, traffic jams, and air pollution in Bangladesh."

"Bangladeshi students have the talent it takes to navigate in this field. They just do not get the proper recognition," shared Professor Satyendra, who also teaches at the Commonwealth University of Pennsylvania in the US. "I have taken advanced-level courses on VLSI at AUST. However, only 36 students got the opportunity to enrol in this course due to the shortage of facilities. In 2016, we bought Cadence Design Systems software at a 90% discount for BDT 30 lakh with 4 years licence. Around BDT 4 lakh was spent on buying server computers which are essential for running the software. The software needs to be renewed every 3 years and that costs about BDT 17 to 22 lakh, depending on research resources."

Regarding the sustainability of the chip industry in the country, Professor Satyendra said, "Bangladesh needs more contracts from abroad if the country wants to sustain itself in the semiconductor ecosystem. The government also needs to listen to experts if they want to avoid the failures of previous initiatives."

Government initiatives

The government also acknowledged the importance of this industry in Bangladesh and is working fast to implement an actionable roadmap and policy.

During a stakeholder meeting on December 18, 2024, titled 'Semiconductors - A new frontier for the Bangladesh economy and employment', it was announced that a high-level task force will be formed for the growth of the semiconductor sector in Bangladesh.

On January 1, 2025, Bangladesh Investment Development Authority (BIDA) announced a 13-member task force to address policy gaps, recommend incentives, and identify immediate opportunities in the semiconductor sector in Bangladesh. The task force comprises 3 members of academia, 3 industry experts, 3 non-resident Bangladeshi (NRB), and 4 members from the government. The task force will present actionable outcomes by the end of January, says BIDA.

The future of semiconductor engineering in Bangladesh is a story of potential waiting to be realised. Bangladesh might not become Taiwan overnight, which dominates the global semiconductor market, led by companies like TSMC, but while the challenges are considerable, the opportunities are too significant to ignore. Bangladesh could adopt an approach prioritising VLSI design and gradually moving towards manufacturing in the long term.

With strategic planning, foreign and domestic investment in education and infrastructure, research, talent development, and industry-academia collaboration, Bangladesh can carve out a place in the global semiconductor industry as it did previously with the freelancing and garment sector.​

 

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Taskforce proposes semiconductor fund for design and testing

The national semiconductor taskforce has recommended creating a dedicated "semiconductor fund" under the ICT Division or the Bangladesh Bank to support new ventures through venture capital or term financing.

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Taskforce proposes semiconductor fund for design and testing

The national semiconductor taskforce has recommended creating a dedicated "semiconductor fund" under the ICT Division or the Bangladesh Bank to support new ventures through venture capital or term financing.

The recommendation was part of a series of short-term (2025-26) proposals submitted to the chief adviser on July 1 by Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority and Bangladesh Economic Zones Authority, according to a press release.

Among the short-term priorities, the taskforce proposed launching a virtual knowledge portal offering tiered certification aligned with global standards, setting up industry-grade training labs in at least five institutions by 2027, and creating shared cleanrooms for chip packaging and testing.

It also called for practical training for engineers through rotation-based on-site programmes, rolling out certification through select universities, and implementing targeted tax and import policy measures with clear policy guardrails.

Formed on January 1, 2025, the 13-member taskforce includes representatives from the government, private sector, academia, and the non-resident Bangladeshi community.

The taskforce also called for practical training for engineers through rotation-based on-site programmes

It was tasked with identifying capability gaps and outlining a phased roadmap for Bangladesh's entry into the semiconductor sector.

In its findings, the taskforce recommended prioritising chip design, testing, and packaging in the short and medium terms, citing the capital-intensive nature of fabrication.

The roadmap focuses on three pillars: skills development, business and policy support, and global partnerships. Long-term strategies include engaging NRBs in investment and training, and forming strategic G2G partnerships for technical cooperation and knowledge transfer.

"The roadmap offers Bangladesh a clear, feasible route to join the global chip design and testing scene," said Chowdhury.

"With focused interventions, this could be a turning point in transforming Bangladesh into a technology-driven economy," he added.

Professor Yunus lauded the taskforce's efforts and stressed the need for international collaboration and talent development to implement the roadmap effectively.

The Chief Adviser's Office will form dedicated working groups to oversee implementation, as Bangladesh eyes a competitive role in the evolving global semiconductor supply chain.​