Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
The following video talks about the nascent semiconductor industry in Bangladesh.
Bangladesh Defense
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #2
Bangladesh not India is going to be the hub of semiconductor industry. The Netherlands has shown interest in building semiconductor factory in Bangladesh.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #3
Bangladesh has made an entry into semiconductor industry with high hopes.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #4
Semiconductor industry and the national security of Bangladesh.
- 3,017
- 1,495
- Copy to clipboard
- Moderator
- #5
Policy support can propel semiconductor industry growth
Currently, our exploration in this industry revolves around the IC chip design part. But if we are able to enter the semiconductor ecosystem, it is possible that Bangladesh’s revenue from the industry will be similar to current revenues earned from RMG
Electrical and Computer Engineer, Mohammed Enayetur Rahman. Sketch: TBS
The global semiconductor industry stands in a pretty decent and promising position today.
Much of the credit of this success can be attributed to the proactive support and strategic interventions from governments around the world. Interestingly, a big chunk of this $600 billion dollar market is dominated by the Asia-Pacific. So, now is a good time for Bangladesh to learn from its neighbours.
It is undeniable that technological progress will only create further demand for integrated circuit (IC) chips, and the market is projected to double in value by the end of the decade, becoming a $1 trillion industry.
This market deserves our serious attention for diversifying Bangladesh's economy in a more resilient and effective way to ensure sustained growth. Currently, our exploration in this industry revolves around the IC chip design part. But if we are able to enter the semiconductor ecosystem, which includes silicon wafer production, IC chip fabrication, IC chip packaging, assembly and testing, and integration into products as well, it's possible that Bangladesh's revenue from the semiconductor industry will be similar to the current revenue earned from the RMG sector.
However, to let that happen, our government needs to fuel our semiconductor industry.
Bangladesh currently earns around $5 million annually from the semiconductor industry, mostly by providing IC design services. Whereas the RMG sector contributes about $40 billion annually — a boom that is evidently a result of several decades of careful nurturing from the government.
Sectors like pharmaceuticals and active pharmaceutical ingredients, leather and leather goods, non-leather footwear, home textiles, and several others are also getting special attention from the government, and some have already crossed the billion-dollar mark regarding exports. If the semiconductor industry gets a similar policy focus, it will surely surpass the expressed ambition of the government — building a $10 billion semiconductor industry by 2031.
As mentioned above, some countries in the Asia-Pacific, including China, Taiwan, South Korea, Japan, Malaysia, Singapore, and our neighbour India are in relatively good positions in the market. The governments of these nations are investing heavily in this industry considering the massive demand leading China, Japan, Taiwan, and South Korea to be the 'Big 4' semiconductor players.
Recently Vietnam has been able to attract multi-billion-dollar foreign direct investment (FDI) in semiconductor manufacturing. The Philippines and India are also reaping the benefits from this trend.
India is already earning around $60 billion from the industry, and this is not by chance. The Indian government invested heavily in setting up IT-based universities to increase their skilled workforce and announced a $10 billion fund to strengthen the semiconductor industry in December 2021. These are the areas where we are also currently facing a shortage.
The Indian government also launched a programme called 'Semicon' to promote the production of semiconductors in the country. Under this programme, when setting up a semiconductor fabrication plant, the government extends fiscal support of up to 50% of the project cost to the approved applicants.
Their current push to develop India into a semiconductor manufacturing hub through Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes under the umbrella of the India Semiconductor Mission (ISM) seems like a step in the right direction. India's 55,000 design engineers now account for 20% of the global chip design talent pool.
India is strong in design, opting for manufacturing, and already attracting major investments in the value chain.
In order to nurture our industry, the Bangladeshi government needs to take a similar stance. We can encourage local companies to start exploring IC chip packaging, assembly and testing. On the other hand, fabrication is highly sophisticated and needs a massive amount of capital and highly skilled engineers and researchers, which is not realistically feasible at this very moment. Although, with the aid of befitting policies, that too could very well become a reality in the future.
In the beginning, during the inception of ULKASEMI, it was very hard to make people understand that Bangladesh could design chips. But now the industry is already established. In order for it to grow, it now needs special attention, similar to how the RMG sector has been nurtured.
The government of Bangladesh has played an active role in designing policy support to the RMG sector, which was crucial to its success. This includes back-to-back L/C, bonded warehouse, cash incentives, export credit guarantee scheme, tax holiday and related facilities.
The RMG industry greatly benefits from reduced tax rates and other facilities. It experiences a lowered corporate income tax rate. The income tax rate for textile manufacturers is also reduced.
These initiatives have helped Bangladesh remain competitive in RMG exports. The bold, timely and focused policy support extended by the government has also saved the RMG industry from the unprecedented impacts of the Covid-19 pandemic.
For sustained and inclusive growth of the semiconductor industry in Bangladesh, we will need that amount of policy focus, including friendlier skill migration policies, and, in the process, open up dialogues with other countries, such as Taiwan, South Korea, and Japan, for partnership opportunities, the exchange of knowledge and experience, and skilled workers.
The government has already set up multiple IT villages, IT incubators, and ICT parks in the country. These parks facilitate easy terms with tax holidays for investors. By leveraging these investments, undeniably, we can be headed in the right direction. The blueprint for success has already been laid out for us by our neighbouring countries, particularly India. If we provide the semiconductor industry with the necessary support, Bangladesh can potentially become a notable player in the market before 2031.
Mohammed Enayetur Rahman is the founder, CEO, and president of ULKASEMI.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #6
Bangladesh can become a semiconductor packaging hub
Bangladesh can position itself to be an active player, particularly in semiconductor packaging. The country has a good number of advantages, a key advantage being the availability of cheap labour. The country has a young workforce, which is an important asset.
Bangladesh can become a semiconductor packaging hub
PHOTO: REUTERS
Recently, there have been discussions going on in the country on developing a semiconductor manufacturing sector, in an effort to diversify our economy and accelerate economic growth. Semiconductor chips, or integrated circuit (IC) chips, are the brains of modern electronic devices. In 2020, more than 932 billion chips were produced in the world – that's more than 116 chips per person. You may be using more than 150 IC chips on a daily basis via your smartphone, depending on the model. In the era of Fourth Industrial Revolution (4IR), the demand for IC chips is only going to rise, which means semiconductor manufacturing will keep growing; the semiconductor market is expected to almost double in value, to become a USD 1 trillion industry, by the end of this decade.
Manufacturing IC chips and integrating them into commercial electronic devices constitute probably the most technologically advanced and complex manufacturing value chain. Simply put, the major steps in semiconductor manufacturing include: 1) IC chip design; 2) silicon wafer production; 3) IC chip fabrication; 4) IC chip packaging, assembly and testing; and 5) integration to systems/commercial products.
In Bangladesh, some IC design-related activities have started recently. But that is not the focus of this article. Out of the steps listed above, IC chip fabrication, also called front-end process, consists of highly sophisticated process steps that need huge capital (several billion US dollars), highly skilled engineers and scientists, and intense involvement in advanced research and development (R&D). Only a few companies in the world are able to do IC fabrication, such as TSMC, Intel, Samsung, Global Foundries, etc. At present, it is not realistic for Bangladesh to enter the IC chip fabrication sector. But what is doable right now is IC chip packaging, assembly and testing.
For simplicity, let's use "packaging" to refer to this step, which is also called back-end process. An IC chip, built on a thin single crystal silicon wafer, is vulnerable, fragile, and easily gets damaged when exposed to the ambient atmosphere. So, it must be secured in a package that provides the necessary protection against mechanical, thermal, and chemical damages. An IC chip cannot work on its own. Hence, the package must provide connection between the chip and other circuit components. The package must also dissipate the heat generated because of the current flowing through the chip so as not to overheat and destroy it.
An IC package is a highly complex engineered product that needs multidisciplinary science and engineering expertise to design and manufacture. A lot of value addition happens in this segment of semiconductor manufacturing. Forecast by Straits Research, a leading market research organisation, shows that Outsourced Semiconductor Assembly and Test (OSAT) services are growing at a compound annual growth rate of 8.5 percent, from $37.95 billion in 2021 to an estimated $72.90 billion in 2030.
IC packaging is technologically less demanding and labour-intensive. That is why this segment of semiconductor manufacturing was shifted from the West to the Asia-Pacific region in the early 1980s. Packaging has been thriving in this region that used to offer low wages – e.g. in Malaysia, China, Taiwan, etc. However, labour costs in these countries have risen over the years. IC packaging is again being shifted to new, lower-wage countries. Vietnam, taking advantage of this shift, has been able to attract multi-billion-dollar foreign direct investment (FDI) in semiconductor manufacturing. Companies like Intel, Samsung, LG, AmKor, Panasonic, Foxconn, etc have been investing heavily in high-tech parks in Vietnam. The Philippines is also reaping benefits from this trend. India, too, has entered the semiconductor industry very recently in an emphatic way.
Against this backdrop, Bangladesh can position itself to be an active player, particularly in semiconductor packaging. The country has a good number of advantages, a key advantage being the availability of cheap labour. The country has a young workforce, which is an important asset. The ongoing nationwide effort on the quality assurance of higher education should help convince investors in this tech-intensive sector about the supply of talents in engineering and science. Our solid experience in managing export-oriented industry in other sectors is a plus point as well.
Recent changes in the geopolitical scenario have been compelling the global semiconductor manufacturing sector to diversify its supply chain and relocate some of the process steps to countries that pose lower risks. Bangladesh can be a beneficiary of this development. The country may aim to attract a few prominent international players to bring in FDI by providing attractive tax and other incentives, and by ensuring ease of doing business. This needs consideration and solicitation at the highest level.
Policies should also be friendly to local entrepreneurs. Domestic entrepreneurs with lower budgets may explore the possibility of entering the IC packaging sector by targeting simpler products that require smaller investments. Established packaging manufacturers nowadays tend to target advanced packaging solutions like 2.5D/3D packaging, wafer level packaging, system-in-package, etc. This creates opportunities for smaller/newer players to produce simpler products – e.g. those based on surface-mount technology (SMT), quad-flat no-lead (QFN) package, etc.
The time is ripe for Bangladesh to explore the possibility of entering the lucrative semiconductor manufacturing sector in a substantial way. It may be worth mentioning again that semiconductor manufacturing is probably the most complex value chain there is. So, due diligence by investing time and efforts is vital to comprehend this sector of great promise. Intermingling with international players and experts to create a solid understanding will help in devising good policies and in targeting niche areas to engage in.
Dr A S M A Haseeb is professor at the Department of Nanomaterials and Ceramic Engineering of Bangladesh University of Engineering and Technology (Buet), and has R&D experience in semiconductor packaging in Malaysia in collaboration with industrial partners like NXP Semiconductors, STMicroelectronics, Motorola, etc.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #7
Bangladesh wants to be semiconductor hub.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #8
Semiconductor promises multibillion-dollar earnings
Startups now floating
DOULOT AKTER MALA
Published :
Mar 20, 2024 00:15Published :
Updated :
Mar 20, 2024 00:15Startups begin floating as multibillion-dollar semiconductor industry beacons Bangladesh having umpteen engineers coming out from nearly 95 educational institutions, pioneers say, as global economic powers scramble for sourcing chips.
Industry data show around 25,000 Electrical and Electronics Engineers and Computer Engineers are coming out annually with graduation or master's degree as resources that can help grab the potential in the fastest-growing global economy.
Industry people say Bangladesh can earn billions of dollar in chip designing or prefabrication stage by imparting training to the existing pool of engineers with government investment, which other countries like India, China, the USA are doing.
The $600-billion global semiconductor industry shows signs of booming to $1.0 trillion in size by 2030, says Mckinsey & Company.
Founder and CEO of Technohaven Company Ltd Habibullah N Karim, also former president of Bangladesh Association of Software and Information Services (BASIS), says Bangladesh has the potential to grab 3.0 to 4.0 per cent of the $1.0 trillion worth of semiconductor industry across the globe by grooming skilled manpower.
Currently, three companies in Bangladesh are engaged in chip designing, including two large ones named ULKASEMI and Neural Semiconductor Limited.
Primesilicon is another company in the latest techno industry doing prefabrication work for last 12-13 years.
Since commencing startup in 2007, ULKASEMI has now nearly 25 global clients, including big-name ones like Apple and Taiwan Semiconductor Manufacturing Company Limited (TSMC), where Bangladeshi engineers are supporting in chip designing.
Neural Semiconductor, a concern of DBL Group, has invested in VLSI Design and tied up with 27-28 universities to support resource buildup for this industry.
The firm ULKASEMI, headquartered in Cupertino (Silicon Valley), has obtained land at the Hitech Park in Kaliakoir to establish a semiconductor plant for testing and packaging in future.
Founder and Chief Executive Officer (CEO) of ULKASEMI Mohammad Enayetur Rahman, has observed a remarkable rise in work orders (specification negotiation) from global technological giants like Apple, Google and Facebook in recent times.
"Bangladesh's capacity has been well-established at prefabrication stage among the global clients," he says.
Mr Enayetur Rahman, one of the trailblazers in the fastest-growing field of knowledge economy, says they have observed a 50-percent growth in works during the last five years.
"Our target is achieving an annual growth of 20 to 30 per cent with support of the government in resource buildup," he told the FE writer.
The company has over 300 engineers in Bangladesh, 35 in Silicon Valley, USA, and 30 in Canada and looks to have 100 engineers in India, he said.
"This is a future knowledge-intensive industry. Modern world cannot think without semiconductors," says Mr Rahman, who has working experiences in Silicon Valley.
He feels the need for a separate cabinet body under the Prime Minister's Office (PMO) focused on semiconductor to oversee investment and plan governmental support mechanisms.
To substantiate he proposition he points out recent dilemma over determining the lead ministry for the knowledge-based industry.
The company supports chip designing from not only Bangladesh but also from other countries, too, due to meeting "clients' confidentiality".
Md Shakhawat Hossain, Chief Executive Officer (CEO) of Neural Semiconductor, says the company started off in 2017 with 20 engineers from BUET and now it has a pool of more than 100 engineering professionals.
"We are taking offices in the USA and Malaysia to meet the clients' requirement and explore the potential," he told this correspondent.
The company has four to five regular clients from the United States, Japan, and Malaysia, he added.
"Resource build-up needs a considerable amount of investment as obtaining licences for the training software is expensive," he said, echoing the call for government's fund support.
India is earning $40 billion by exporting chip designs, equivalent to Bangladesh's apparel export, he mentions as one instance of the potential the sector holds as it has linkage to world's most advanced manufacturing industries.
"We are now at takeoff stage of the knowledge-intensive industry where government's intervention is required for resource buildup on a massive scale as only fresh graduates cannot take up the task," he notes.
The company is working with 27/28 universities to help in developing skilled engineers by improving educational curriculum.
Mr Habibullah N Karim says country's IT companies usually operate with small capital while semiconductor industry needs billions of taka in investment to impart training.
"Matching grants of government for startup companies could help them to develop human resources."
A coordinated effort of private sector, academia and government could help develop a high-end pool of experts and encourage talented engineers to join the industry, he adds.
The CEO of MetroNet Bangladesh Ltd, Syed Almas Kabir, also former president of BASIS and Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI), mentions that neighbouring India has been proceeding towards fabrication of semiconductor while China, Malaysia, Taiwan and South Korea have fabrication plants.
More companies would be encouraged to grab the opportunity if the government extends fiscal support, tax breaks, he says.
He shared interest of Malaysian Governor in Penang during his visit to Malaysia earlier to hire electrical engineers from Bangladesh for semiconductor industry. Other countries are incentivizing their industry to grab the potential of semiconductor market and it is required in Bangladesh, too.
Taposh Kumar Mazumder, Executive Director of Walton Hi-tech Industries Limited, has said the company had a plan to invest in semiconductor industry but now it halted after the company found some barriers here.
"Semiconductor industry needs huge investment and uninterrupted supply-chain managements in a country," he added.
"People used to laugh at us at the beginning. Now we have clients like US tech-giant Apple, Taiwan's semiconductor-giant TSMC," says Md Muzammel Hossain, manager, branding and public relations, in ULKASEMI
The company has around 25-26 regular clients, which was only 10 in number five years back.
Golam Sarwar Bhuiya, Director (technical) of Hitech Park Authority, says they are planning to set up a testing laboratory as per investors' requirement for semiconductor industry.
Skill-development training would be imparted under a World Bank (WB) project, he says, emphasizing the authority's effort to attract more investment in hi-tech.
He agrees fabrication stage of semiconductors needs some policy supports, including intellectual property rights.
The ICT ministry is also working on framing a policy to facilitate growth of the industry, he says.
Shabbir A Khan, president of BMCCI, says some $300 billion worth of investment has been made in Malaysia, including Intel's $70 billion, in semiconductor industry.
"A delegation from Malaysia may visit Bangladesh in next two-three months to explore the possibility skills trainings here," he says.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #9
Policy support can help earn $10b from semiconductor manufacture by 2041
Bangladesh would be able to earn $10 billion from semiconductor manufacturing by 2041 if proper policy support is ensured, according to Zunaid Ahmed Palak, state minister for telecom and ICT.
Policy support can help earn $10b from semiconductor manufacture by 2041
Says state minister for ICT
Bangladesh would be able to earn $10 billion from semiconductor manufacturing by 2041 if proper policy support is ensured, according to Zunaid Ahmed Palak, state minister for telecom and ICT.
The uses of microchip and nanochips is growing day by day, so with the right policy support, it will be possible to earn at least $10 billion from exporting semiconductor items by 2041, he said.
Semiconductors are materials with electrical conductivity between conductors and insulators.
Chips, or integrated circuits, are made from semiconductors and serve as the backbone of modern electronics, powering devices like computers, smartphones and other digital technologies through their intricate circuitry.
He said there is a need for a semiconductor policy for the faster development of this sector.
He also urged for an industry-academia collaboration to create a highly skilled and technologically advanced workforce compatible for this sector as the demand is very high at home and abroad.
Palak was speaking at a seminar, titled "Unleashing the potential of the semiconductor industry in Bangladesh", organised by the Dhaka Chamber of Commerce and Industry (DCCI) at its office in the capital.
"We will focus on building 50,000 skilled manpower on microchip designing. Also, we are putting more emphasis on research and development," he said.
Palak informed that the government will invest in startups that work with chip design.
DCCI President Ashraf Ahmed suggested that for successful implementation of import substitution and export diversification, Bangladesh should prioritise the development of the semiconductor industry.
"Many countries are investing heavily in the semiconductor industry, creating a high demand for skilled workers," he said.
Besides, the government should focus on cultivating the skilled workforce required to meet the growing demand of the semiconductor industry in Bangladesh, he added.
He also underscored the importance of simplification of administrative procedures for setting up semiconductor businesses, including licensing, permits, and import/export regulations.
Mir Shahrukh Islam, managing director of Bondstein Technologies Ltd, said the semiconductor industry in Bangladesh is still at a very early stage.
"The high ambition of the government to scale it up to $1 billion from $5 million at present within the next six years would require significant improvement in the talent supply side," he said.
"We need to involve Bangladeshi diaspora global talents in the semiconductor industry to place ourselves in this niche market. Production linked subsidy is a must to attract FDI," Islam added.
ASMA Haseeb, a professor of nanomaterial and ceramic engineering at the Bangladesh University of Engineering and Technology, presented the keynote paper.
He said the global semiconductor market will reach $1,307.7 billion by 2032.
The main semiconductor manufacturing process includes design, chip fabrication, assembling, testing and packaging.
It is a labour-intensive industry and at least 81 percent of the world's semiconductor assembling, testing and packaging production is located in Asia.
Taiwan, South Korea, Singapore and India are few of the Asian countries that give special support to this sector in the form of grants, equity investment, favourable loans, R&D support, tax incentives etc.
But despite having a few design houses in Bangladesh with an annual market size of about $5 million, the local industry is yet to reach the expected level, Haseeb added.
GSM Jafarullah, managing director of the Bangladesh High-Tech Park Authority, Razib Hasan, co-founder and vice-president at Software Teton Private Ltd, Liakat Ali, additional managing director at Walton Digi-Tech Industries, and M Niaz Asadullah, a visiting professor at University of Reading, UK, also spoke.
Says state minister for ICT
Bangladesh would be able to earn $10 billion from semiconductor manufacturing by 2041 if proper policy support is ensured, according to Zunaid Ahmed Palak, state minister for telecom and ICT.
The uses of microchip and nanochips is growing day by day, so with the right policy support, it will be possible to earn at least $10 billion from exporting semiconductor items by 2041, he said.
Semiconductors are materials with electrical conductivity between conductors and insulators.
Chips, or integrated circuits, are made from semiconductors and serve as the backbone of modern electronics, powering devices like computers, smartphones and other digital technologies through their intricate circuitry.
He said there is a need for a semiconductor policy for the faster development of this sector.
He also urged for an industry-academia collaboration to create a highly skilled and technologically advanced workforce compatible for this sector as the demand is very high at home and abroad.
Palak was speaking at a seminar, titled "Unleashing the potential of the semiconductor industry in Bangladesh", organised by the Dhaka Chamber of Commerce and Industry (DCCI) at its office in the capital.
"We will focus on building 50,000 skilled manpower on microchip designing. Also, we are putting more emphasis on research and development," he said.
Palak informed that the government will invest in startups that work with chip design.
DCCI President Ashraf Ahmed suggested that for successful implementation of import substitution and export diversification, Bangladesh should prioritise the development of the semiconductor industry.
"Many countries are investing heavily in the semiconductor industry, creating a high demand for skilled workers," he said.
Besides, the government should focus on cultivating the skilled workforce required to meet the growing demand of the semiconductor industry in Bangladesh, he added.
He also underscored the importance of simplification of administrative procedures for setting up semiconductor businesses, including licensing, permits, and import/export regulations.
Mir Shahrukh Islam, managing director of Bondstein Technologies Ltd, said the semiconductor industry in Bangladesh is still at a very early stage.
"The high ambition of the government to scale it up to $1 billion from $5 million at present within the next six years would require significant improvement in the talent supply side," he said.
"We need to involve Bangladeshi diaspora global talents in the semiconductor industry to place ourselves in this niche market. Production linked subsidy is a must to attract FDI," Islam added.
ASMA Haseeb, a professor of nanomaterial and ceramic engineering at the Bangladesh University of Engineering and Technology, presented the keynote paper.
He said the global semiconductor market will reach $1,307.7 billion by 2032.
The main semiconductor manufacturing process includes design, chip fabrication, assembling, testing and packaging.
It is a labour-intensive industry and at least 81 percent of the world's semiconductor assembling, testing and packaging production is located in Asia.
Taiwan, South Korea, Singapore and India are few of the Asian countries that give special support to this sector in the form of grants, equity investment, favourable loans, R&D support, tax incentives etc.
But despite having a few design houses in Bangladesh with an annual market size of about $5 million, the local industry is yet to reach the expected level, Haseeb added.
GSM Jafarullah, managing director of the Bangladesh High-Tech Park Authority, Razib Hasan, co-founder and vice-president at Software Teton Private Ltd, Liakat Ali, additional managing director at Walton Digi-Tech Industries, and M Niaz Asadullah, a visiting professor at University of Reading, UK, also spoke.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #10
সেমিকন্ডাকটরে চোখ বাংলাদেশের
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #11
Semiconductor boom-hope or hype?
In his book "Chip War: The Fight for the World's Most Critical Technology," noted American economic historian Chris Miller, argues, "Microchips are the new oil. This vital and precious resource has an even more profound impact on people's lives than oil". In the book, which has been named the Finan
Semiconductor boom-hope or hype?
ATIQUL KABIR TUHIN
Published :
Jun 05, 2024 22:34
Updated :
Jun 05, 2024 22:34
In his book "Chip War: The Fight for the World's Most Critical Technology," noted American economic historian Chris Miller, argues, "Microchips are the new oil. This vital and precious resource has an even more profound impact on people's lives than oil". In the book, which has been named the Financial Times Best Business Book of 2022, he says microchips are "the most complex piece of machinery ever assembled by humans, and there is no other item with a greater influence on globalization and international politics."
To put it simply, the microchip, also known as an integrated circuit (IC), is a small piece of silicon that contains a complex network of electronic circuits. These chips are fundamental building blocks of modern electronic devices for a vast array of functionalities. Their demand is currently exceeding all initial expectations. From guiding complex missiles to heating your morning coffee, microchips are the hidden heroes behind everything from smartphones and televisions to the refrigerators and washing machines that keep our modern lives running smoothly. What's intriguing is their capability to manage numerous tasks, including processing, memory, storage, logic control, digital communication, sensing and detection, and power management. As technological progress marches forward, semiconductors are poised to become even more integral to the majority of devices used by humans in the future.
The global semiconductor market is a trillion-dollar powerhouse in the making, surging at 20 per cent annually. It is no surprise tthat a fierce global race is on. Tech giants like the US, China, South Korea, and Japan are pouring billions into securing their slice of the pie by increasing domestic chip production. Fueled by the US-China tech war and potential disruptions in Taiwan, the race for semiconductor dominance has become a top global priority.
To read the rest of the news, please click on the link above.
ATIQUL KABIR TUHIN
Published :
Jun 05, 2024 22:34
Updated :
Jun 05, 2024 22:34
In his book "Chip War: The Fight for the World's Most Critical Technology," noted American economic historian Chris Miller, argues, "Microchips are the new oil. This vital and precious resource has an even more profound impact on people's lives than oil". In the book, which has been named the Financial Times Best Business Book of 2022, he says microchips are "the most complex piece of machinery ever assembled by humans, and there is no other item with a greater influence on globalization and international politics."
To put it simply, the microchip, also known as an integrated circuit (IC), is a small piece of silicon that contains a complex network of electronic circuits. These chips are fundamental building blocks of modern electronic devices for a vast array of functionalities. Their demand is currently exceeding all initial expectations. From guiding complex missiles to heating your morning coffee, microchips are the hidden heroes behind everything from smartphones and televisions to the refrigerators and washing machines that keep our modern lives running smoothly. What's intriguing is their capability to manage numerous tasks, including processing, memory, storage, logic control, digital communication, sensing and detection, and power management. As technological progress marches forward, semiconductors are poised to become even more integral to the majority of devices used by humans in the future.
The global semiconductor market is a trillion-dollar powerhouse in the making, surging at 20 per cent annually. It is no surprise tthat a fierce global race is on. Tech giants like the US, China, South Korea, and Japan are pouring billions into securing their slice of the pie by increasing domestic chip production. Fueled by the US-China tech war and potential disruptions in Taiwan, the race for semiconductor dominance has become a top global priority.
To read the rest of the news, please click on the link above.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #12
Can Bangladesh be a semiconductor hub?
The semiconductor manufacturing sector is well-known for its complexity, high stakes and intense corporate competition. Demand has always been driven by innovation, with every new technology changing the game.
Can Bangladesh be a semiconductor hub?
The semiconductor manufacturing sector is well-known for its complexity, high stakes and intense corporate competition. Demand has always been driven by innovation, with every new technology changing the game.
Right now, artificial intelligence (AI) is leading the way in innovation and has the potential to catapult the semiconductor industry into a new growth trajectory. Specialised hardware, or semiconductors designed with AI in mind, will be essential for enabling AI applications. In the near future, the need for AI-specific chips will soar due to the expanding need for instant computing, seamless connectivity, and advanced sensing capabilities.
Asia has a market share of approximately 90 percent in chip assembly and testing, and more than 75 percent of the world's capacity for fabricating semiconductors is based here. Taiwan is a dominant force in the industry, holding a 68 percent market share and is home to numerous cutting-edge chip manufacturing facilities.
Nearly 90 percent of the cutting-edge chips for AI and quantum computing in use today are produced by TSMC, a well-known Taiwan manufacturer.
India has made significant progress with initiatives like "Make in India" and substantial investments in semiconductor plants, aiming to become a global hub. In the 2024 interim union budget, India substantially increased funding for semiconductor and display manufacturing support.
The Indian semiconductor market, valued at $34.3 billion in 2023, is forecasted to surge to $100.2 billion by 2032. Micron, a prominent American chip company, has pledged $825 million for a facility in India, expecting to generate more than 300,000 jobs by 2026.
In the midst of the chip competition between China and the United States, Vietnam seeks to draw investment by bolstering its semiconductor industry through tax breaks and incentives. Grants and collaborative research with private firms such as FPT are planned.
Vietnam is home to Intel's main facility, but it also wants to draw in other companies like Samsung and Nvidia. By 2030, the government wants to train 50,000 engineers and added semiconductors to national development initiatives. The country may become a major player in the semiconductor supply chain.
Bangladesh is witnessing a nascent emergence of the semiconductor industry, which forms the foundation of contemporary electronics. It is venturing into the semiconductor space because of growing demand for electronics worldwide and a deliberate drive towards digitalisation. Currently, the industry is mainly focused on low-end assembly and testing rather than high-end semiconductor manufacturing.
The country must take care of its vital infrastructure requirements if it hopes to develop a competitive semiconductor industry. To create a workforce with the necessary skills and knowledge, technical education and training must be improved. This development can be facilitated through collaborations with leading global educational institutions and professionals.
Research centres specialising in semiconductor technology and grants for university and industry research serve as growth-promoting factors for research and development. It takes a significant financial commitment to build cutting-edge fabrication facilities, but this can be accomplished with public-private partnerships and incentives for foreign investment.
It is essential to establish a thorough supply chain that includes vendors of machinery, components, and raw materials. This ecosystem can be developed by supporting startups and encouraging relevant companies to enter this market.
Additionally, implementing policies that support the semiconductor industry like tax incentives, befitting regulations, and protection of intellectual property rights, can attract and retain investments.
The semiconductor manufacturing sector is well-known for its complexity, high stakes and intense corporate competition. Demand has always been driven by innovation, with every new technology changing the game.
Right now, artificial intelligence (AI) is leading the way in innovation and has the potential to catapult the semiconductor industry into a new growth trajectory. Specialised hardware, or semiconductors designed with AI in mind, will be essential for enabling AI applications. In the near future, the need for AI-specific chips will soar due to the expanding need for instant computing, seamless connectivity, and advanced sensing capabilities.
Asia has a market share of approximately 90 percent in chip assembly and testing, and more than 75 percent of the world's capacity for fabricating semiconductors is based here. Taiwan is a dominant force in the industry, holding a 68 percent market share and is home to numerous cutting-edge chip manufacturing facilities.
Nearly 90 percent of the cutting-edge chips for AI and quantum computing in use today are produced by TSMC, a well-known Taiwan manufacturer.
India has made significant progress with initiatives like "Make in India" and substantial investments in semiconductor plants, aiming to become a global hub. In the 2024 interim union budget, India substantially increased funding for semiconductor and display manufacturing support.
The Indian semiconductor market, valued at $34.3 billion in 2023, is forecasted to surge to $100.2 billion by 2032. Micron, a prominent American chip company, has pledged $825 million for a facility in India, expecting to generate more than 300,000 jobs by 2026.
In the midst of the chip competition between China and the United States, Vietnam seeks to draw investment by bolstering its semiconductor industry through tax breaks and incentives. Grants and collaborative research with private firms such as FPT are planned.
Vietnam is home to Intel's main facility, but it also wants to draw in other companies like Samsung and Nvidia. By 2030, the government wants to train 50,000 engineers and added semiconductors to national development initiatives. The country may become a major player in the semiconductor supply chain.
Bangladesh is witnessing a nascent emergence of the semiconductor industry, which forms the foundation of contemporary electronics. It is venturing into the semiconductor space because of growing demand for electronics worldwide and a deliberate drive towards digitalisation. Currently, the industry is mainly focused on low-end assembly and testing rather than high-end semiconductor manufacturing.
The country must take care of its vital infrastructure requirements if it hopes to develop a competitive semiconductor industry. To create a workforce with the necessary skills and knowledge, technical education and training must be improved. This development can be facilitated through collaborations with leading global educational institutions and professionals.
Research centres specialising in semiconductor technology and grants for university and industry research serve as growth-promoting factors for research and development. It takes a significant financial commitment to build cutting-edge fabrication facilities, but this can be accomplished with public-private partnerships and incentives for foreign investment.
It is essential to establish a thorough supply chain that includes vendors of machinery, components, and raw materials. This ecosystem can be developed by supporting startups and encouraging relevant companies to enter this market.
Additionally, implementing policies that support the semiconductor industry like tax incentives, befitting regulations, and protection of intellectual property rights, can attract and retain investments.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #13
Can Bangladesh become a semiconductor nation?
Abdullah Al MasudAbdullah Al Masud
Publish : 10 Jun 2024, 10:52 AMUpdate : 10 Jun 2024, 10:52 AM
Global semiconductor industry is passing through exciting times, characterized by heightened expectations for market growth, accompanied by a rat-race to secure resources and talents to fend off any potential disruptions in the supply of microchips to the global technology machines. Fueled by relentless innovation in artificial intelligence-based computing solutions, automotive and miniature electronics, and Internet of Things (IOTs), resulting into enhanced usage of complex microchips or integrated circuits (ICs) in any device one can possibly imagine, the global market for chips is projected to grow, according to McKinsey estimates, to more than $1 trillion by 2030, from its current $600 billion annually.
Resurgent market demand and increased government incentives have led to upsurge in chip making foundries, expanding the global capacity at an unprecedented rate.
Due to this high potential growth in a relatively short future, there is going to be a lot more demand for chip making foundry, chip designing and packaging and testing capacities in the future. Though the semiconductor industry is also seeing new innovations in the way chip is developed and produced, the existing segmentation in front end and back end will command entry of new players, most likely gravitating to the existing geographic locations and allowing for new entrants too, particularly due to the economic and political need for diversifying the production base, compounded to a large extent by the fallout from the US-China geo-political tensions leading to the US-China chip war. Much of the growth will gravitate towards existing geographies, however new entrants such as India and Vietnam in the Asia region, are also taking initiatives to attract enhanced investment alluring global chip manufacturing companies with government sponsored incentives.
Bangladesh does not want to be left behind. Media reports indicate that the government desires to raise exports of semiconductor products to $10bn by 2031.
Bangladeshi chip design companies are currently engaged in chip design services to global companies. One may find it interesting that a Bangladeshi company, Ulkasemi, designed chips for big-name companies that included Apple too, being the largest and oldest Bangladeshi owned chip design services company. Ulkasemi started in Bangladesh and extended to Silicon Valley, and then to other global locations, such as in Ontario and Bengaluru. The company maintains a large design centre that adheres to strict quality and security protocols where a bustling team of Bangladeshi young engineers create chip design solutions for the global technology companies. Ulkasemi is a TSMC Design Center Alliance (DCA) partner, TSMC being the world's largest producer of semiconductors and the main supplier of tech-companies, having 53% of global market share alone currently. In addition to being a partner of TSMC, Ulkasemi also works with almost all the major globally known foundries, which include Intel, Micron, Global Foundry, and Texas Instruments too.
Given the potential, Bangladeshi entrepreneurs and policy makers are seriously considering how Bangladesh can make a foray into the growing world market for semiconductors and related products. Admittedly, countries that can make an inroad into this industry will be the ones driving the world economies in the future years, as semiconductors are aptly considered the new "oil."
The technology mix and the positioning within the value-chain targeting a product segment or segments will be a critical determinant for gradual evolution into a sustaining manufacturing base from an initial start point. According to an industry expert I met at an international semiconductor event, who holds a key position in one of the world's top semiconductor equipment manufacturing companies, it is essential to locate the right "sweet spot" for entry. Given that the semiconductor industry is extremely knowledge intensive and sensitive to complex technology know-how and skills, and the right ecosystem that supports the industry is essential for potential success. One of the important elements is the supply network of the support vendors. In our neighbouring country, India, vendors are now creating presence, however it may be costly to have such a network unless there is an existing industry base or a critical mass of customers.
Establishing fabrication foundries, or fabs in short, requires substantial capital investments, necessitating thorough research and evaluation before committing resources. Due to the high cost and complexity of wafer fabrication, semiconductor has historically been concentrated in a few key geographies where a robust ecosystem supported the agglomeration of semiconductor firms. Countries with established semiconductor industries have developed extensive infrastructure, economies of scale, and government support, including financial incentives and intellectual property protection.
The manufacturing industry is divided into two primary stages: the front end (wafer fabrication) and the back end (assembly, testing, and packaging). The front end is more automated and capital-intensive, whereas the back end is labour-intensive.
Geopolitical tensions, particularly between the US and China, are prompting semiconductor companies to reconsider and diversify their production locations. Global consulting company, Kearney, in an analysis of Front-End Semiconductor Manufacturing Attractiveness Index, highlights three major factors influencing fab location decisions:
Business environment: Includes legal/regulatory frameworks, intellectual property protection, innovation outlook, and availability of skilled talent.
Incentives: Governments offer various incentives to attract semiconductor companies, such as tax breaks, subsidies, and utility deals.
Operating costs: Considers labour, utilities, and supply chain expenses crucial for the long-term viability of fab operations.
Among the established front-end manufacturing hubs, ie fabrication foundry countries, Taiwan and South Korea remain in the top spots of the attractiveness index, currently accounting for a total of 63% of the global semiconductor market, including all kinds of foundries. The high-end Asian alternatives are Japan and Singapore. Both have a high technology ecosystem and high government subsidy programmes, however none can match the cost advantages of Taiwan and South Korea. Among the established Western countries, the United States, Germany and France are the frontrunners, however these countries have some of the highest operating costs, nearly 40 % more than their Asian counterparts. Malaysia is among the top five countries, and has been branded as the low-cost overachiever by Kearney.
Among the emergent destinations that are poised as promising options for front-end manufacturing, India and Vietnam top the list considering the factors influencing the attractiveness index. These countries compensate for their lack of front-end fabrication experience and comparatively less robust business environments by offering generous subsidies and relatively low operational costs.
Industry analysts consider that now is the best time to make a foothold in the industry as there is unprecedented demand for new fabs and services, and many countries which are investing in capacity development at present will end up as gravitational geographies where the industry will likely locate in the future years. The agglomeration economies benefit the current industrial base of Malaysia in electric and electronics, South Korea and Taiwan in semiconductors -- these three countries have benefitted in the recent years from their respective comparative advantages in the cited sectors, which were cultivated through targeted policies and practices.
From the heydays of geographic concentration in a few hubs, the enhanced demand for chips have led to increased fragmentation and geographical dispersal in chip productions, compounded by global factors related to the geo-political tensions mentioned above. As a result, the global market for semiconductor is witnessing new entrants leading to growth in production of chips and services, and the semiconductor producing countries are pursuing their efforts to create conducive ecosystems to grab enhanced share of the chip market.
There are reasons to be optimistic about the future of the industry, nevertheless there are inherent risks too, since the technology in the semiconductor value-chain is extremely complex, only a few countries and companies could master the know-how and build super-charging ecosystems. In the race to create footholds, the countries will be required to continuously assess evolving market conditions and devise strategies to adapt to the new market conditions.
By targeting back-end manufacturing and fostering collaboration with other semiconductor-producing countries, Bangladesh can harness its young, ambitious workforce to capitalize on the industry's growth potential
How Bangladesh can grab a share
Bangladesh was not included in the list of attractive countries for front-end manufacturing, arguably due to the relative absence of the factors influencing the attractiveness index. However, this is front-end manufacturing or foundry, Bangladesh will be better off focusing on the back-end, ie packaging and testing, and chip design segment.
Bangladesh already has a chip design service industry, though a miniscule of the globally almost $50bn, which is projected to grow to more than $84bn by 2030. Among the few players, Ulkasemi has been able to achieve the crowning success, being the oldest and the largest in Bangladesh, as mentioned above. The founder and owner is a Bangladeshi American based in Silicon Valley and a veteran of the chip design industry, who gained long experience working in AMD and few start-up companies. Ulkasemi's technology prowess and market network gained considerable traction and the company leads the way into the chip design services from the heartland of Bangladesh to the world of tech-companies globally.
Given this head-start, Bangladesh can utilize the experience in chip design gained by Ulkasemi and others, to augment the size of the industry and train more and more engineers suited for work in the chip design services industry. Unlike the manufacturing segment of the chip industry value-chain, there are relatively low barriers to entry in the chip design services market and the scale of investment needed to make a headway is relatively lower than the staggering capitals required for a foundry and packaging and testing industry. Of course, the human capital and market network have to be there to gain traction. Bangladeshi diaspora, particularly professionals who gained significant experience in working with semiconductor companies, potentially can be instrumental in making a breakthrough.
To read the rest of the news, please click on the link above.
Abdullah Al MasudAbdullah Al Masud
Publish : 10 Jun 2024, 10:52 AMUpdate : 10 Jun 2024, 10:52 AM
Global semiconductor industry is passing through exciting times, characterized by heightened expectations for market growth, accompanied by a rat-race to secure resources and talents to fend off any potential disruptions in the supply of microchips to the global technology machines. Fueled by relentless innovation in artificial intelligence-based computing solutions, automotive and miniature electronics, and Internet of Things (IOTs), resulting into enhanced usage of complex microchips or integrated circuits (ICs) in any device one can possibly imagine, the global market for chips is projected to grow, according to McKinsey estimates, to more than $1 trillion by 2030, from its current $600 billion annually.
Resurgent market demand and increased government incentives have led to upsurge in chip making foundries, expanding the global capacity at an unprecedented rate.
Due to this high potential growth in a relatively short future, there is going to be a lot more demand for chip making foundry, chip designing and packaging and testing capacities in the future. Though the semiconductor industry is also seeing new innovations in the way chip is developed and produced, the existing segmentation in front end and back end will command entry of new players, most likely gravitating to the existing geographic locations and allowing for new entrants too, particularly due to the economic and political need for diversifying the production base, compounded to a large extent by the fallout from the US-China geo-political tensions leading to the US-China chip war. Much of the growth will gravitate towards existing geographies, however new entrants such as India and Vietnam in the Asia region, are also taking initiatives to attract enhanced investment alluring global chip manufacturing companies with government sponsored incentives.
Bangladesh does not want to be left behind. Media reports indicate that the government desires to raise exports of semiconductor products to $10bn by 2031.
Bangladeshi chip design companies are currently engaged in chip design services to global companies. One may find it interesting that a Bangladeshi company, Ulkasemi, designed chips for big-name companies that included Apple too, being the largest and oldest Bangladeshi owned chip design services company. Ulkasemi started in Bangladesh and extended to Silicon Valley, and then to other global locations, such as in Ontario and Bengaluru. The company maintains a large design centre that adheres to strict quality and security protocols where a bustling team of Bangladeshi young engineers create chip design solutions for the global technology companies. Ulkasemi is a TSMC Design Center Alliance (DCA) partner, TSMC being the world's largest producer of semiconductors and the main supplier of tech-companies, having 53% of global market share alone currently. In addition to being a partner of TSMC, Ulkasemi also works with almost all the major globally known foundries, which include Intel, Micron, Global Foundry, and Texas Instruments too.
Given the potential, Bangladeshi entrepreneurs and policy makers are seriously considering how Bangladesh can make a foray into the growing world market for semiconductors and related products. Admittedly, countries that can make an inroad into this industry will be the ones driving the world economies in the future years, as semiconductors are aptly considered the new "oil."
The technology mix and the positioning within the value-chain targeting a product segment or segments will be a critical determinant for gradual evolution into a sustaining manufacturing base from an initial start point. According to an industry expert I met at an international semiconductor event, who holds a key position in one of the world's top semiconductor equipment manufacturing companies, it is essential to locate the right "sweet spot" for entry. Given that the semiconductor industry is extremely knowledge intensive and sensitive to complex technology know-how and skills, and the right ecosystem that supports the industry is essential for potential success. One of the important elements is the supply network of the support vendors. In our neighbouring country, India, vendors are now creating presence, however it may be costly to have such a network unless there is an existing industry base or a critical mass of customers.
Establishing fabrication foundries, or fabs in short, requires substantial capital investments, necessitating thorough research and evaluation before committing resources. Due to the high cost and complexity of wafer fabrication, semiconductor has historically been concentrated in a few key geographies where a robust ecosystem supported the agglomeration of semiconductor firms. Countries with established semiconductor industries have developed extensive infrastructure, economies of scale, and government support, including financial incentives and intellectual property protection.
The manufacturing industry is divided into two primary stages: the front end (wafer fabrication) and the back end (assembly, testing, and packaging). The front end is more automated and capital-intensive, whereas the back end is labour-intensive.
Geopolitical tensions, particularly between the US and China, are prompting semiconductor companies to reconsider and diversify their production locations. Global consulting company, Kearney, in an analysis of Front-End Semiconductor Manufacturing Attractiveness Index, highlights three major factors influencing fab location decisions:
Business environment: Includes legal/regulatory frameworks, intellectual property protection, innovation outlook, and availability of skilled talent.
Incentives: Governments offer various incentives to attract semiconductor companies, such as tax breaks, subsidies, and utility deals.
Operating costs: Considers labour, utilities, and supply chain expenses crucial for the long-term viability of fab operations.
Among the established front-end manufacturing hubs, ie fabrication foundry countries, Taiwan and South Korea remain in the top spots of the attractiveness index, currently accounting for a total of 63% of the global semiconductor market, including all kinds of foundries. The high-end Asian alternatives are Japan and Singapore. Both have a high technology ecosystem and high government subsidy programmes, however none can match the cost advantages of Taiwan and South Korea. Among the established Western countries, the United States, Germany and France are the frontrunners, however these countries have some of the highest operating costs, nearly 40 % more than their Asian counterparts. Malaysia is among the top five countries, and has been branded as the low-cost overachiever by Kearney.
Among the emergent destinations that are poised as promising options for front-end manufacturing, India and Vietnam top the list considering the factors influencing the attractiveness index. These countries compensate for their lack of front-end fabrication experience and comparatively less robust business environments by offering generous subsidies and relatively low operational costs.
Industry analysts consider that now is the best time to make a foothold in the industry as there is unprecedented demand for new fabs and services, and many countries which are investing in capacity development at present will end up as gravitational geographies where the industry will likely locate in the future years. The agglomeration economies benefit the current industrial base of Malaysia in electric and electronics, South Korea and Taiwan in semiconductors -- these three countries have benefitted in the recent years from their respective comparative advantages in the cited sectors, which were cultivated through targeted policies and practices.
From the heydays of geographic concentration in a few hubs, the enhanced demand for chips have led to increased fragmentation and geographical dispersal in chip productions, compounded by global factors related to the geo-political tensions mentioned above. As a result, the global market for semiconductor is witnessing new entrants leading to growth in production of chips and services, and the semiconductor producing countries are pursuing their efforts to create conducive ecosystems to grab enhanced share of the chip market.
There are reasons to be optimistic about the future of the industry, nevertheless there are inherent risks too, since the technology in the semiconductor value-chain is extremely complex, only a few countries and companies could master the know-how and build super-charging ecosystems. In the race to create footholds, the countries will be required to continuously assess evolving market conditions and devise strategies to adapt to the new market conditions.
By targeting back-end manufacturing and fostering collaboration with other semiconductor-producing countries, Bangladesh can harness its young, ambitious workforce to capitalize on the industry's growth potential
How Bangladesh can grab a share
Bangladesh was not included in the list of attractive countries for front-end manufacturing, arguably due to the relative absence of the factors influencing the attractiveness index. However, this is front-end manufacturing or foundry, Bangladesh will be better off focusing on the back-end, ie packaging and testing, and chip design segment.
Bangladesh already has a chip design service industry, though a miniscule of the globally almost $50bn, which is projected to grow to more than $84bn by 2030. Among the few players, Ulkasemi has been able to achieve the crowning success, being the oldest and the largest in Bangladesh, as mentioned above. The founder and owner is a Bangladeshi American based in Silicon Valley and a veteran of the chip design industry, who gained long experience working in AMD and few start-up companies. Ulkasemi's technology prowess and market network gained considerable traction and the company leads the way into the chip design services from the heartland of Bangladesh to the world of tech-companies globally.
Given this head-start, Bangladesh can utilize the experience in chip design gained by Ulkasemi and others, to augment the size of the industry and train more and more engineers suited for work in the chip design services industry. Unlike the manufacturing segment of the chip industry value-chain, there are relatively low barriers to entry in the chip design services market and the scale of investment needed to make a headway is relatively lower than the staggering capitals required for a foundry and packaging and testing industry. Of course, the human capital and market network have to be there to gain traction. Bangladeshi diaspora, particularly professionals who gained significant experience in working with semiconductor companies, potentially can be instrumental in making a breakthrough.
To read the rest of the news, please click on the link above.
Last edited:
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #14
সেমিকন্ডাক্টরের ৬০০ বিলিয়ন ডলারের বাজারে বাংলাদেশের অবস্থান কোথায়?
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #15
এপল-মেটা-গুগলের চিপস ডিজাইন করছে বাংলাদেশ |
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #16
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
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.
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.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #17
Experts identify challenges for semiconductor industry
A study has identified several risk factors for the development of the semiconductor industry in Bangladesh.
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.
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.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #18
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
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.
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.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #19
The prospects of semiconductor industry of Bangladesh.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #20
Semiconductors can be the new RMG
Bangladesh's endeavour to become a knowledge-based economy has already gained significant momentum.
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.
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.
- 3,017
- 1,495
- Copy to clipboard
- Moderator
- #21
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)
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)
- 3,017
- 1,495
- Copy to clipboard
- Moderator
- #22
CMOS characteristics discussed by Dr. Nadim Chowdhury at BUET
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #23
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).
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.
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.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #24
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
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.
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.
- 3,017
- 1,495
- Copy to clipboard
- Moderator
- #25
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.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #26
Taskforce led by Bida formed for semiconductor sector
Bida executive chairman will head the 13-member taskforce
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.
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.
Saif
Senior Member
- 13,626
- 7,405
- Origin
- Axis Group
- Copy to clipboard
- Thread starter
- #27
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...
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.
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.
Latest Posts
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
[🇮🇳] India's Hypersonic propulsion- Tracking the development
- Latest: Krishna with Flute
-
-
-
-
South Asia Bajrang Dal forces Muslim vendor to shut shop near temple in Ghaziabad
- Latest: Krishna with Flute
-
-
-
-
-
-
-
-
-
-
-
-
-
-
