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Pay has to go up - but above all, business atmosphere and stability has to improve, to stem the tide of brain drain.
[🇧🇩] Semiconductor Industry in Bangladesh
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Bangladesh Defense
Pay has to go up - but above all, business atmosphere and stability has to improve, to stem the tide of brain drain.
Saif
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Bangladesh steps up in global chip race
After more than a decade of steady growth, Bangladesh’s semiconductor sector is preparing for what industry leaders describe as its biggest push yet, backed by coordinated government policy, tax incentives and renewed efforts to expand globally.
Bangladesh steps up in global chip race
Tax incentives, policy support and global partnerships drive industry’s expansion plans
Mahmudul Hasan
After more than a decade of steady growth, Bangladesh’s semiconductor sector is preparing for what industry leaders describe as its biggest push yet, backed by coordinated government policy, tax incentives and renewed efforts to expand globally.
What began with a handful of chip designers has grown into an ecosystem of local companies serving clients in the United States, Japan, Taiwan and other countries.
Although still small, the sector is entering a new phase as policy support, international partnerships and talent development begin to converge, industry leaders say.
The government has announced a series of tax incentives for semiconductor and chip-related activities in the FY2026-27 budget, exempting regulatory duty, supplementary duty, VAT and advance tax on raw materials used in chip design, testing and packaging until June 30, 2031, while retaining a 1 percent import duty.
The incentives follow months of policy work and international roadshows led by the Bangladesh Semiconductor Industry Association (BSIA), which says global technology companies are increasingly viewing Bangladesh as a potential destination for semiconductor design and engineering services.
“The combination of fiscal incentives, policy support and growing engineering capacity could position Bangladesh to capture a larger share of the rapidly expanding global semiconductor market,” MA Jabbar, president of BSIA, told The Daily Star.
The momentum is expected to accelerate this week with the National Semiconductor Symposium & BEAR Summit 2026 at Novo Theatre, Dhaka, on July 25-26. The event will bring together government leaders, global semiconductor executives, researchers, investors, universities and members of the Bangladeshi diaspora.
Organised by the BSIA, in partnership with the Ministry of Science and Technology and the Silicon River Bangladesh programme, the summit will be inaugurated by Prime Minister Tarique Rahman.
It is expected to unveil eight strategic documents, including a national semiconductor talent roadmap, ecosystem roadmap and international partnership framework, to guide Bangladesh’s long-term semiconductor ambitions.
Roadshows in Malaysia, South Korea and the United States have also attracted global semiconductor companies interested in collaborating with local firms.
INSIDE BANGLADESH’S CHIP INDUSTRY
After graduating from Buet in 1977 and later working as a chip designer at AMD in the United States, Mohammed Enayetur Rahman returned to Bangladesh and founded Ulkasemi in Dhaka in 2007 with just four engineers.
Since then, Ulkasemi has grown into one of the country’s leading semiconductor firms. It became a Design Center Alliance partner of TSMC in 2021 and now operates design centres in four countries, employing more than 600 engineers with a senior management team that brings over 250 years of combined Silicon Valley experience.
The wider industry has also expanded. According to BSIA, around 1,200 engineers now work in semiconductor-related activities across companies including Ulkasemi, Neural Semiconductor, iTest Bangladesh, sBIT Inc, Mars Solutions, Prime Silicon, Siliconova, and others. Annual industry revenue is estimated at $12 million-$15 million, still modest by global standards but significantly higher than a few years ago.
The industry’s immediate focus is not advanced chip manufacturing.
“Manufacturing (foundries/fabs) is currently beyond our reach in Bangladesh,” said Munir Ahmed, founder of iTest Bangladesh Limited. “Our core focus for the country will be design, testing and assembly.”
Founded around 2021 with a small training-oriented team, iTest now employs 33 people and expects its workforce to exceed 50 by the end of this year while serving mainly American and Taiwanese clients.
Neural Semiconductor, launched by DBL Group in 2017, has grown from 20 engineers to more than 200 and plans to double its engineering workforce again.
“We primarily focus on physical design, analogue design, layout and RF design,” MA Jabbar, also managing director at Neural Semiconductor Limited.
Another early entrant, sBIT Inc, established in Silicon Valley in 2007 and in Bangladesh in 2010, works with international clients including Broadcom and AMD while providing chip design tools and training support to universities.
“We are two pioneer companies in Bangladesh: sBIT and Ulkasemi,” said Jahangir Dewan, CEO of sBIT.
Prof Muhammad Mustafa Hussain, a professor of electrical and computer engineering at Predue University, said several initiatives are under way, including a Semiconductor Training, Advances and Research (STAR) facility at BUET, efforts to revive cleanroom infrastructure at the Bangladesh Atomic Energy Commission and expanded research collaboration programmes.
Around 3,500 people are expected to receive training through current initiatives, while BSIA has set long-term targets of 10,000 skilled professionals and more than $1 billion in revenue by 2030.
Bangladesh’s push comes as semiconductors become increasingly strategic, powering artificial intelligence, data centres, electric vehicles, defence equipment and smartphones.
Industry leaders say the country’s neutral geopolitical position could work in its favour.
“Bangladesh is a neutral country. Neither side views us as a rival,” said Prof Hussain, referring to the ongoing US-China technology competition.
Bangladesh currently accounts for only about 0.01 percent of the global semiconductor market. Prof Hussain said the initial target was to raise that share to 0.1 percent before eventually reaching 1 percent.
“If you could capture 1 percent of the global market by 2035, it would be more than $100 billion-dollar earnings for Bangladesh,” he added.
INDUSTRY SEEKS POLICY BACKING
Despite recent policy initiatives, industry leaders say Bangladesh will need stronger long-term support to become a competitive player in the global semiconductor industry.
Ulkasemi’s Enayetur Rahman called for a dedicated semiconductor fund offering low-interest loans and grants, a 20-year tax holiday, a 25 percent export incentive for semiconductor design, testing and packaging services, and cash incentives for exports.
He also urged the government to revise customs rules for all import methods, simplify visa procedures, provide tax benefits for foreign experts, establish a public-private deep-tech investment fund, develop dedicated infrastructure in Hi-Tech Parks, and ensure political stability and a genuine one-stop approval system for investors.
Tax incentives, policy support and global partnerships drive industry’s expansion plans
Mahmudul Hasan
After more than a decade of steady growth, Bangladesh’s semiconductor sector is preparing for what industry leaders describe as its biggest push yet, backed by coordinated government policy, tax incentives and renewed efforts to expand globally.
What began with a handful of chip designers has grown into an ecosystem of local companies serving clients in the United States, Japan, Taiwan and other countries.
Although still small, the sector is entering a new phase as policy support, international partnerships and talent development begin to converge, industry leaders say.
The government has announced a series of tax incentives for semiconductor and chip-related activities in the FY2026-27 budget, exempting regulatory duty, supplementary duty, VAT and advance tax on raw materials used in chip design, testing and packaging until June 30, 2031, while retaining a 1 percent import duty.
The incentives follow months of policy work and international roadshows led by the Bangladesh Semiconductor Industry Association (BSIA), which says global technology companies are increasingly viewing Bangladesh as a potential destination for semiconductor design and engineering services.
“The combination of fiscal incentives, policy support and growing engineering capacity could position Bangladesh to capture a larger share of the rapidly expanding global semiconductor market,” MA Jabbar, president of BSIA, told The Daily Star.
The momentum is expected to accelerate this week with the National Semiconductor Symposium & BEAR Summit 2026 at Novo Theatre, Dhaka, on July 25-26. The event will bring together government leaders, global semiconductor executives, researchers, investors, universities and members of the Bangladeshi diaspora.
Organised by the BSIA, in partnership with the Ministry of Science and Technology and the Silicon River Bangladesh programme, the summit will be inaugurated by Prime Minister Tarique Rahman.
It is expected to unveil eight strategic documents, including a national semiconductor talent roadmap, ecosystem roadmap and international partnership framework, to guide Bangladesh’s long-term semiconductor ambitions.
Roadshows in Malaysia, South Korea and the United States have also attracted global semiconductor companies interested in collaborating with local firms.
INSIDE BANGLADESH’S CHIP INDUSTRY
After graduating from Buet in 1977 and later working as a chip designer at AMD in the United States, Mohammed Enayetur Rahman returned to Bangladesh and founded Ulkasemi in Dhaka in 2007 with just four engineers.
Since then, Ulkasemi has grown into one of the country’s leading semiconductor firms. It became a Design Center Alliance partner of TSMC in 2021 and now operates design centres in four countries, employing more than 600 engineers with a senior management team that brings over 250 years of combined Silicon Valley experience.
The wider industry has also expanded. According to BSIA, around 1,200 engineers now work in semiconductor-related activities across companies including Ulkasemi, Neural Semiconductor, iTest Bangladesh, sBIT Inc, Mars Solutions, Prime Silicon, Siliconova, and others. Annual industry revenue is estimated at $12 million-$15 million, still modest by global standards but significantly higher than a few years ago.
The industry’s immediate focus is not advanced chip manufacturing.
“Manufacturing (foundries/fabs) is currently beyond our reach in Bangladesh,” said Munir Ahmed, founder of iTest Bangladesh Limited. “Our core focus for the country will be design, testing and assembly.”
Founded around 2021 with a small training-oriented team, iTest now employs 33 people and expects its workforce to exceed 50 by the end of this year while serving mainly American and Taiwanese clients.
Neural Semiconductor, launched by DBL Group in 2017, has grown from 20 engineers to more than 200 and plans to double its engineering workforce again.
“We primarily focus on physical design, analogue design, layout and RF design,” MA Jabbar, also managing director at Neural Semiconductor Limited.
Another early entrant, sBIT Inc, established in Silicon Valley in 2007 and in Bangladesh in 2010, works with international clients including Broadcom and AMD while providing chip design tools and training support to universities.
“We are two pioneer companies in Bangladesh: sBIT and Ulkasemi,” said Jahangir Dewan, CEO of sBIT.
Prof Muhammad Mustafa Hussain, a professor of electrical and computer engineering at Predue University, said several initiatives are under way, including a Semiconductor Training, Advances and Research (STAR) facility at BUET, efforts to revive cleanroom infrastructure at the Bangladesh Atomic Energy Commission and expanded research collaboration programmes.
Around 3,500 people are expected to receive training through current initiatives, while BSIA has set long-term targets of 10,000 skilled professionals and more than $1 billion in revenue by 2030.
Bangladesh’s push comes as semiconductors become increasingly strategic, powering artificial intelligence, data centres, electric vehicles, defence equipment and smartphones.
Industry leaders say the country’s neutral geopolitical position could work in its favour.
“Bangladesh is a neutral country. Neither side views us as a rival,” said Prof Hussain, referring to the ongoing US-China technology competition.
Bangladesh currently accounts for only about 0.01 percent of the global semiconductor market. Prof Hussain said the initial target was to raise that share to 0.1 percent before eventually reaching 1 percent.
“If you could capture 1 percent of the global market by 2035, it would be more than $100 billion-dollar earnings for Bangladesh,” he added.
INDUSTRY SEEKS POLICY BACKING
Despite recent policy initiatives, industry leaders say Bangladesh will need stronger long-term support to become a competitive player in the global semiconductor industry.
Ulkasemi’s Enayetur Rahman called for a dedicated semiconductor fund offering low-interest loans and grants, a 20-year tax holiday, a 25 percent export incentive for semiconductor design, testing and packaging services, and cash incentives for exports.
He also urged the government to revise customs rules for all import methods, simplify visa procedures, provide tax benefits for foreign experts, establish a public-private deep-tech investment fund, develop dedicated infrastructure in Hi-Tech Parks, and ensure political stability and a genuine one-stop approval system for investors.
Saif
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Semiconductor take-off envisaged with AI, partnerships
Staff Correspondent 26 July, 2026, 05:12
Prime minister Tarique Rahman speaks as chief guest at the inauguration of two-day National Semiconductor Symposium and BEAR Summit 2026 in the capital on Saturday. | PID photo
International technology leaders and academics said Bangladesh has the ingredients needed to build a globally competitive semiconductor industry, stressing that success will depend on developing skilled human resources, embracing artificial intelligence, strengthening university-industry collaboration and forging global partnerships.
These observations came at the opening of the two-day National Semiconductor Symposium and BEAR Summit 2026, being held on July 25-26 in the capital on Saturday. The summit is jointly organised by the Ministry of Science and Technology, the Bangladesh Semiconductor Industry Association and the Silicon River Bangladesh programme.
Prime minister Tarique Rahman inaugurated the summit as chief guest.
Chief technology officer of Texas Instruments, Ahmed Bahai, said today’s artificial intelligence revolution rests on three pillars: massive computing power driven by Moore’s Law, massive volumes of data generated by billions of connected devices and generative AI enabled by the 2017 Transformer breakthrough that led to GPTs and modern large language models.
Bahai said the future of AI extends far beyond cloud computing, with Edge AI set to become equally important by enabling intelligence to run directly on laptops, smartphones, vehicles, robots and industrial equipment. Such systems will offer lower latency, greater privacy, stronger security and improved energy efficiency, while many devices will eventually be capable of training smaller AI models locally.
He said AI and semiconductors are reinforcing one another in a powerful cycle in which better chips create more capable AI systems while AI itself is transforming chip design, verification, packaging, manufacturing and material discovery.
According to Bahai, the semiconductor industry’s future will no longer depend solely on shrinking transistors. Breakthroughs will increasingly come from advanced packaging, heterogeneous integration, silicon photonics, power management, new materials, quantum technologies and application-specific chips for AI, healthcare, communications, automotive systems and sensing technologies.
Highlighting AI’s impact on scientific discovery, Bahai said researchers previously knew of only around 48,000 stable crystal structures, but AI has expanded that number to more than 2.2 million, dramatically accelerating the search for next-generation semiconductor materials.
He also described future vehicles as ‘data centres on wheels’ where real-time AI processes information without relying on cloud connectivity and pointed to semiconductors’ growing role in wearable healthcare devices, continuous glucose monitoring, gene sequencing, smart drug delivery and portable diagnostics. ‘AI will not simply replace engineers,’ Bahai said. ‘But engineers who use AI will outperform those who don’t.’
Professor Terry Lynn Alford of Arizona State University said Bangladesh has significant potential to build semiconductor packaging capabilities by leveraging its young workforce and learning from successful international models.
Drawing on more than two decades of experience in faculty development and workforce training across several countries, he said Bangladesh could avoid common pitfalls while building a sustainable talent pipeline.
Professor Muhammad Mustafa Hussain of Purdue University stressed that semiconductor development requires long-term investment in education, beginning from school-level programming and STEM education.
He urged students to become both thinkers and doers, arguing that innovation comes from asking the right questions and acting on ideas.
Hussain said that coordinated initiatives can rapidly build a skilled workforce. Professor Md Mamun Bin Ibne Reaz, vice-chancellor of the Islamic University of Technology, highlighted that Bangladesh has the essential elements for a semiconductor ecosystem but needs better integration.
He suggested updating university curricula for integrated circuit design, offering affordable access to Electronic Design Automation software through government support, partnering with global companies like TSMC and Texas Instruments, and establishing industry-led skill development centres.
Industry leaders also highlighted persistent workforce challenges. Md Shakhawat Hossain, CEO of Neural Semiconductor, highlighted the need for significant investment in semiconductor talent, noting that engineers require over a year of specialised training to be industry-ready.
Despite Bangladesh is producing over 20,000 graduates annually in related fields, the country should aim to train at least 1,000 semiconductor engineers each year, to reach 10,000 in the next four to five years, he said.
He emphasised the ongoing shortage of experienced engineers as a major challenge, as many international clients seek professionals with at least 10 years of experience.
He highlighted the semiconductor industry as Bangladesh’s next major economic growth driver after ready-made garments.
He emphasised the government’s commitment to creating a business-friendly environment for semiconductor investment, essential for AI, robotics, and renewable energy.
He said that to attract investment, the government has removed taxes on raw materials, introduced cash incentives for semiconductor service exports, and allocated Tk 5 crore annually for startup grants. Additional tax incentives and infrastructure support are planned, with a focus on collaboration among government, academia, and industry.
Prime minister’s adviser Mahdi Amin outlined efforts to establish a tripartite innovation ecosystem connecting universities, industry, and the Bangladeshi diaspora, encouraging stronger collaboration to bridge academic research with industrial needs.
He also emphasised transforming ‘brain drain’ into ‘brain circulation’ by connecting expatriate professionals with local institutions, supported by increased budget allocations for research infrastructure and skills development.
Staff Correspondent 26 July, 2026, 05:12
Prime minister Tarique Rahman speaks as chief guest at the inauguration of two-day National Semiconductor Symposium and BEAR Summit 2026 in the capital on Saturday. | PID photo
International technology leaders and academics said Bangladesh has the ingredients needed to build a globally competitive semiconductor industry, stressing that success will depend on developing skilled human resources, embracing artificial intelligence, strengthening university-industry collaboration and forging global partnerships.
These observations came at the opening of the two-day National Semiconductor Symposium and BEAR Summit 2026, being held on July 25-26 in the capital on Saturday. The summit is jointly organised by the Ministry of Science and Technology, the Bangladesh Semiconductor Industry Association and the Silicon River Bangladesh programme.
Prime minister Tarique Rahman inaugurated the summit as chief guest.
Chief technology officer of Texas Instruments, Ahmed Bahai, said today’s artificial intelligence revolution rests on three pillars: massive computing power driven by Moore’s Law, massive volumes of data generated by billions of connected devices and generative AI enabled by the 2017 Transformer breakthrough that led to GPTs and modern large language models.
Bahai said the future of AI extends far beyond cloud computing, with Edge AI set to become equally important by enabling intelligence to run directly on laptops, smartphones, vehicles, robots and industrial equipment. Such systems will offer lower latency, greater privacy, stronger security and improved energy efficiency, while many devices will eventually be capable of training smaller AI models locally.
He said AI and semiconductors are reinforcing one another in a powerful cycle in which better chips create more capable AI systems while AI itself is transforming chip design, verification, packaging, manufacturing and material discovery.
According to Bahai, the semiconductor industry’s future will no longer depend solely on shrinking transistors. Breakthroughs will increasingly come from advanced packaging, heterogeneous integration, silicon photonics, power management, new materials, quantum technologies and application-specific chips for AI, healthcare, communications, automotive systems and sensing technologies.
Highlighting AI’s impact on scientific discovery, Bahai said researchers previously knew of only around 48,000 stable crystal structures, but AI has expanded that number to more than 2.2 million, dramatically accelerating the search for next-generation semiconductor materials.
He also described future vehicles as ‘data centres on wheels’ where real-time AI processes information without relying on cloud connectivity and pointed to semiconductors’ growing role in wearable healthcare devices, continuous glucose monitoring, gene sequencing, smart drug delivery and portable diagnostics. ‘AI will not simply replace engineers,’ Bahai said. ‘But engineers who use AI will outperform those who don’t.’
Professor Terry Lynn Alford of Arizona State University said Bangladesh has significant potential to build semiconductor packaging capabilities by leveraging its young workforce and learning from successful international models.
Drawing on more than two decades of experience in faculty development and workforce training across several countries, he said Bangladesh could avoid common pitfalls while building a sustainable talent pipeline.
Professor Muhammad Mustafa Hussain of Purdue University stressed that semiconductor development requires long-term investment in education, beginning from school-level programming and STEM education.
He urged students to become both thinkers and doers, arguing that innovation comes from asking the right questions and acting on ideas.
Hussain said that coordinated initiatives can rapidly build a skilled workforce. Professor Md Mamun Bin Ibne Reaz, vice-chancellor of the Islamic University of Technology, highlighted that Bangladesh has the essential elements for a semiconductor ecosystem but needs better integration.
He suggested updating university curricula for integrated circuit design, offering affordable access to Electronic Design Automation software through government support, partnering with global companies like TSMC and Texas Instruments, and establishing industry-led skill development centres.
Industry leaders also highlighted persistent workforce challenges. Md Shakhawat Hossain, CEO of Neural Semiconductor, highlighted the need for significant investment in semiconductor talent, noting that engineers require over a year of specialised training to be industry-ready.
Despite Bangladesh is producing over 20,000 graduates annually in related fields, the country should aim to train at least 1,000 semiconductor engineers each year, to reach 10,000 in the next four to five years, he said.
He emphasised the ongoing shortage of experienced engineers as a major challenge, as many international clients seek professionals with at least 10 years of experience.
He highlighted the semiconductor industry as Bangladesh’s next major economic growth driver after ready-made garments.
He emphasised the government’s commitment to creating a business-friendly environment for semiconductor investment, essential for AI, robotics, and renewable energy.
He said that to attract investment, the government has removed taxes on raw materials, introduced cash incentives for semiconductor service exports, and allocated Tk 5 crore annually for startup grants. Additional tax incentives and infrastructure support are planned, with a focus on collaboration among government, academia, and industry.
Prime minister’s adviser Mahdi Amin outlined efforts to establish a tripartite innovation ecosystem connecting universities, industry, and the Bangladeshi diaspora, encouraging stronger collaboration to bridge academic research with industrial needs.
He also emphasised transforming ‘brain drain’ into ‘brain circulation’ by connecting expatriate professionals with local institutions, supported by increased budget allocations for research infrastructure and skills development.
Saif
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China urged to invest in semiconductor, tech
CEIZ breaks ground at Anwara, 1 lakh jobs expected
Staff Correspondent . Chattogram 28 July, 2026, 00:01
Bangladesh CEIZ Company Limited and China Road and Bridge Corporation officials shake hands following a sub-lease agreement signing as part of the inauguration of China Economic and Industrial Zone at Anwara in Chattogram on Monday. Finance and planning minister Amir Khosru Mahmud Chowdhury, home minister Salahuddin Ahmed, Bangladesh Economic Zones Authority executive chairman Chowdhury Ashik Mahmud Bin Harun and Chinese ambassador Yao Wen, among others, were present. | Press release SouthAsians & Diaspora
Finance and planning minister Amir Khosru Mahmud Chowdhury on Monday called on China to establish a skills development centre in Chattogram and urged its investors to expand investment in strategic sectors, including semiconductors and advanced technology, beyond the readymade garment industry.
He said that investment was the BNP government’s foremost priority in its effort to turn Bangladesh into a $1 trillion economy by 2034.
‘For the present government, the most important issue is investment — investment first, investment second and investment third,’ he said while addressing the groundbreaking ceremony of the China Economic and Industrial Zone or CEIZ at Anwara upazila of Chattogram.
‘Investment will drive the economy forward, create jobs and become the principal force in reaching our target,’ he added.
The industrial zone is being developed on about 800 acres of land at Anwara.
The minister said that the project’s groundbreaking marked not merely the beginning of construction of an industrial estate, but also reflected the government’s long-term vision and commitment to attracting investment to Bangladesh.
He said that the government was removing unnecessary restrictions and pursuing deregulation to make doing business easier.
‘Bangladesh is now open for business 24 hours a day, seven days a week,’ he said, adding that such deregulation initiatives had been introduced by the current government for the first time in the country.
Khosru said that the long-discussed single-window service would be launched soon and that measures were being taken to ensure that foreign investors could repatriate their capital and profits without difficulty.
He urged Chinese investors to list their companies on Bangladesh’s stock market, saying that this would help them raise funds and allow local investors to share in Chinese projects.
It would also reduce reliance on bank borrowing, he said.
The minister said that, alongside investment, the government attached importance to technology transfer and developing skilled human resources.
He said that the project would have an impact beyond its direct investment value, benefiting the regional economy, services and supply chains in Chattogram and surrounding areas.
Expressing satisfaction that housing facilities would be available for workers at the industrial zone, he said that sustainable industrialisation required equal attention to workers’ living standards, environmental protection and biodiversity.
Chinese ambassador to Bangladesh Yao Wen described the CEIZ as a flagship project of Bangladesh-China cooperation.
He said that talks on the project began in 2014, an agreement was signed in 2016 and a memorandum of understanding was signed in 2022.
The groundbreaking, he said, had brought more than a decade of effort into implementation.
The envoy said that the zone had already hosted delegations from more than 110 companies and signed over 30 letters of intent with potential investors, involving prospective investment of about $500 million.
The project is expected to create employment for around 1,00,000 people and attract investment in electric vehicles, batteries, medical equipment and other high-technology industries alongside garment manufacturing, he said.
Yao said that Chinese companies would complete construction of the zone within the stipulated time while maintaining quality standards.
He also hoped for continued Bangladeshi support in ensuring investment-friendly policies, simpler approvals and uninterrupted energy and logistics facilities.
Speakers at the event said that the industrial zone would take Bangladesh-China economic cooperation to a new level and strengthen Chittagong’s position as a key centre for foreign investment, manufacturing and exports.
Bangladesh Economic Zones Authority executive chairman Chowdhury Ashik Mahmud Bin Harun said that at least one factory at the zone would begin full industrial production within the next 18 months. SouthAsians & Diaspora
Home minister Salahuddin Ahmed and state minister for land and Chattogram Hill Tracts affairs Mir Mohammad Helal Uddin attended the event as special guests.
Among others, Chittagong Chamber of Commerce and Industry president Amirul Haque and Chattogram-13 lawmaker Sarwar Jamal Nizam spoke at the programme.
Bangladesh CEIZ Company Limited chairman Wang Benqian delivered the welcome address.
Earlier, on June 17, the cabinet committee on economic affairs approved the development agreement and land lease agreement with Bangladesh CEIZ Company Limited, formed to implement the project.
The BEZA will hold a 30 per cent stake in the company and China Road and Bridge Corporation will hold the remaining 70 per cent.
The BEZA’s equity contribution will include the value of the 50-year lease of the acquired land, while the developer will contribute its share in cash. The capital will be used for internal development, infrastructure construction and operation of the zone.
The Executive Committee of the National Economic Council on June 16 approved the Supporting Infrastructure Project for Chinese Economic and Industrial Zone, with an estimated cost of Tk 4,189 crore.
The project includes a 1,235-metre jetty link road, a 1,181-metre four-lane road, a multipurpose jetty capable of handling vessels of up to 20,000 deadweight tonnes, a 25 MLD central effluent treatment plant, gas transmission facilities, a water reservoir, a solid waste collection station, boundary walls and two power substations.
According to the development project proposal, about Tk 2,467 crore of the cost is expected to come from foreign loans and Tk 1,722 crore from government funds. The foreign financing is proposed under the preferential buyer’s credit facility of the Export-Import Bank of China.
The infrastructure project is scheduled for implementation between January 2027 and December 2031.
A tripartite agreement has already been signed among the BEZA, Chittagong Water Supply and Sewerage Authority and CRBC to ensure water supply to the zone.
The zone’s location near the Karnaphuli Tunnel, Chattogram Port and Shah Amanat International Airport is expected to give it significant connectivity advantages.
CEIZ breaks ground at Anwara, 1 lakh jobs expected
Staff Correspondent . Chattogram 28 July, 2026, 00:01
Bangladesh CEIZ Company Limited and China Road and Bridge Corporation officials shake hands following a sub-lease agreement signing as part of the inauguration of China Economic and Industrial Zone at Anwara in Chattogram on Monday. Finance and planning minister Amir Khosru Mahmud Chowdhury, home minister Salahuddin Ahmed, Bangladesh Economic Zones Authority executive chairman Chowdhury Ashik Mahmud Bin Harun and Chinese ambassador Yao Wen, among others, were present. | Press release SouthAsians & Diaspora
Finance and planning minister Amir Khosru Mahmud Chowdhury on Monday called on China to establish a skills development centre in Chattogram and urged its investors to expand investment in strategic sectors, including semiconductors and advanced technology, beyond the readymade garment industry.
He said that investment was the BNP government’s foremost priority in its effort to turn Bangladesh into a $1 trillion economy by 2034.
‘For the present government, the most important issue is investment — investment first, investment second and investment third,’ he said while addressing the groundbreaking ceremony of the China Economic and Industrial Zone or CEIZ at Anwara upazila of Chattogram.
‘Investment will drive the economy forward, create jobs and become the principal force in reaching our target,’ he added.
The industrial zone is being developed on about 800 acres of land at Anwara.
The minister said that the project’s groundbreaking marked not merely the beginning of construction of an industrial estate, but also reflected the government’s long-term vision and commitment to attracting investment to Bangladesh.
He said that the government was removing unnecessary restrictions and pursuing deregulation to make doing business easier.
‘Bangladesh is now open for business 24 hours a day, seven days a week,’ he said, adding that such deregulation initiatives had been introduced by the current government for the first time in the country.
Khosru said that the long-discussed single-window service would be launched soon and that measures were being taken to ensure that foreign investors could repatriate their capital and profits without difficulty.
He urged Chinese investors to list their companies on Bangladesh’s stock market, saying that this would help them raise funds and allow local investors to share in Chinese projects.
It would also reduce reliance on bank borrowing, he said.
The minister said that, alongside investment, the government attached importance to technology transfer and developing skilled human resources.
He said that the project would have an impact beyond its direct investment value, benefiting the regional economy, services and supply chains in Chattogram and surrounding areas.
Expressing satisfaction that housing facilities would be available for workers at the industrial zone, he said that sustainable industrialisation required equal attention to workers’ living standards, environmental protection and biodiversity.
Chinese ambassador to Bangladesh Yao Wen described the CEIZ as a flagship project of Bangladesh-China cooperation.
He said that talks on the project began in 2014, an agreement was signed in 2016 and a memorandum of understanding was signed in 2022.
The groundbreaking, he said, had brought more than a decade of effort into implementation.
The envoy said that the zone had already hosted delegations from more than 110 companies and signed over 30 letters of intent with potential investors, involving prospective investment of about $500 million.
The project is expected to create employment for around 1,00,000 people and attract investment in electric vehicles, batteries, medical equipment and other high-technology industries alongside garment manufacturing, he said.
Yao said that Chinese companies would complete construction of the zone within the stipulated time while maintaining quality standards.
He also hoped for continued Bangladeshi support in ensuring investment-friendly policies, simpler approvals and uninterrupted energy and logistics facilities.
Speakers at the event said that the industrial zone would take Bangladesh-China economic cooperation to a new level and strengthen Chittagong’s position as a key centre for foreign investment, manufacturing and exports.
Bangladesh Economic Zones Authority executive chairman Chowdhury Ashik Mahmud Bin Harun said that at least one factory at the zone would begin full industrial production within the next 18 months. SouthAsians & Diaspora
Home minister Salahuddin Ahmed and state minister for land and Chattogram Hill Tracts affairs Mir Mohammad Helal Uddin attended the event as special guests.
Among others, Chittagong Chamber of Commerce and Industry president Amirul Haque and Chattogram-13 lawmaker Sarwar Jamal Nizam spoke at the programme.
Bangladesh CEIZ Company Limited chairman Wang Benqian delivered the welcome address.
Earlier, on June 17, the cabinet committee on economic affairs approved the development agreement and land lease agreement with Bangladesh CEIZ Company Limited, formed to implement the project.
The BEZA will hold a 30 per cent stake in the company and China Road and Bridge Corporation will hold the remaining 70 per cent.
The BEZA’s equity contribution will include the value of the 50-year lease of the acquired land, while the developer will contribute its share in cash. The capital will be used for internal development, infrastructure construction and operation of the zone.
The Executive Committee of the National Economic Council on June 16 approved the Supporting Infrastructure Project for Chinese Economic and Industrial Zone, with an estimated cost of Tk 4,189 crore.
The project includes a 1,235-metre jetty link road, a 1,181-metre four-lane road, a multipurpose jetty capable of handling vessels of up to 20,000 deadweight tonnes, a 25 MLD central effluent treatment plant, gas transmission facilities, a water reservoir, a solid waste collection station, boundary walls and two power substations.
According to the development project proposal, about Tk 2,467 crore of the cost is expected to come from foreign loans and Tk 1,722 crore from government funds. The foreign financing is proposed under the preferential buyer’s credit facility of the Export-Import Bank of China.
The infrastructure project is scheduled for implementation between January 2027 and December 2031.
A tripartite agreement has already been signed among the BEZA, Chittagong Water Supply and Sewerage Authority and CRBC to ensure water supply to the zone.
The zone’s location near the Karnaphuli Tunnel, Chattogram Port and Shah Amanat International Airport is expected to give it significant connectivity advantages.
- Jan 24, 2024
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This is the happiest news I have heard this year. Hoping for an onslaught of Chinese businesses to start transferring production to our shores, whose production costs are too high in China itself, or even Vietnam/Cambodia.
Saif
Senior Member
- Jan 24, 2024
- 20,536
- 9,589
- Nation
- Residence
- Axis Group
Turning semiconductor into next economic engine
Due to signs of saturation in the growth of most industrial sectors, including the ready-made garments (RMG) industry, declining local value addition, and rising graduate unemployment, Bangladesh has been under tremendous pressure to find the next sector for job creation and economic growth. Among
Turning semiconductor into next economic engine
Due to signs of saturation in the growth of most industrial sectors, including the ready-made garments (RMG) industry, declining local value addition, and rising graduate unemployment, Bangladesh has been under tremendous pressure to find the next sector for job creation and economic growth. Among many options, the semiconductor industry appears to be beckoning Bangladesh. Despite the opportunity, the entry and scalability barriers of this 78-year-old industry deserve in-depth analysis for the effective and efficient use of national resources. It is worth noting that Bangladesh must invest in thinking and analysis to scale up entry and expand it further in an effective and efficient manner.
The invention of the transistor -- an electronic switch and amplifier -- gave birth to the semiconductor industry in 1947. Over the past 78 years, this invention has grown into an $800 billion industry, with no sign of slowing down. Semiconductors, such as microchips, power nearly all industrial products, from smartphones to missiles. More importantly, this industry offers job opportunities to a diverse group of people, ranging from high-school graduates to those with PhDs in physics or electrical engineering. Hence, due to wage differentials and a growing number of graduates, Bangladesh has reason to feel urgency in leveraging this industry to create jobs and drive economic growth. The obvious question, therefore, is what it takes to scale up and expand. So far, the underlying reasons for optimism have been the large global semiconductor market, a growing pool of science and engineering graduates, the success of Bangladeshi-born semiconductor experts in the USA, and wage differentials. Of course, these are precursors -- but are they sufficient?
Correlation with technology and engineering competence: Semiconductor is a science-, technology-, and engineering-intensive industry. It began with a Nobel Prize-winning invention in physics. Does this imply a linear correlation between relevant scientific, technological, and engineering competence and business success in the semiconductor industry? Perhaps not.
It is worth noting that transistor inventor and Nobel Laureate Dr. Shockley's semiconductor venture in California failed to scale and went bankrupt. Ironically, a radio repair shop (Sony) in war-ravaged Tokyo achieved significant success by licensing transistor technology from Bell Labs. Furthermore, despite past success and a vast patent portfolio, Intel has been struggling to remain competitive. On the other hand, Taiwan, starting from a relatively weak science and engineering base, has grown into a major success story. Similarly, despite India's track record of producing high-caliber engineering graduates from the Indian Institutes of Technology -- and their success in Silicon Valley and top-ranking American engineering schools -- India's last three attempts to develop a semiconductor industry have not scaled into a national economic growth engine. Such realities raise an important question: what else is needed to leverage science and engineering competence to turn semiconductor opportunities into an economic growth driver.
Lesson from RMG and information technology: Bangladesh's RMG sector has successfully created jobs and driven economic growth for 40 years. Did it begin with Bangladesh's skill in tailoring or competence in textile engineering? Perhaps not. Its roots lie in the Multi-Fiber Arrangement (MFA), an international trade pact active from 1974 through 1994 that governed global textile and clothing markets by setting quantitative export quotas. This created an entry opportunity for Bangladesh into global RMG trade. To capitalise on it, foreign buyers and RMG producers supported the initial growth phase of the sector. Unfortunately, no such quota-based opportunity exists in the global semiconductor trade.
The rise of India's export-oriented software and information technology (IT) service industry tempted Bangladesh to follow a similar path. Consequently, Bangladesh made massive investments in expanding computer science education and IT skill development programs. It also invested significantly in improving power supply, internet connectivity, and high-tech parks. Despite these efforts, IT service exports have not scaled to become an economic growth engine comparable to RMG. The underlying reason appears to be that the scale, scope, and externality effects of early entrant India have neutralized Bangladesh's wage advantage in skilled IT labor. Bangladesh has faced similar scaling barriers in call center services and business process outsourcing. In retrospect, the large size of the global market, technological competence, and wage differentials are not sufficient to scale initial success into a major driver of economic growth and job creation.
Bangladesh's semiconductor footprint and its scalability: As early as the 1980s, Bangladesh entered the global semiconductor value chain through a Japanese firm's investment in the Chittagong Export Processing Zone for testing and bonding special-purpose LED lighting devices. Unfortunately, this did not scale in the way Intel's entry into Malaysia -- through a bonding facility for memory chips in Penang -- did. After a long gap, in the 2000s, there was a modest attempt to develop a fabless company through power management integrated circuits, but it did not scale. However, it planted the seeds for ULKASEMI, which now offers high-quality semiconductor design services for OEMs, fabless design houses, and electronic system design companies. Subsequently, a few other design service providers, notably Neural Semiconductor, emerged, creating jobs for more than 1,000 professionals and generating approximately $10 million in revenue.
The semiconductor value chain comprises five major segments: (i) microchip R&D and intellectual property creation for next-generation specifications, (ii) design services to translate specifications into detailed designs, (iii) fabrication (printing designs on silicon wafers, known as foundry), (iv) testing, assembling, and packaging, and (v) equipment, gases, and chemicals. As noted, despite early entry and foreign investment, bonding and testing did not scale. On the other hand, existing design services do not appear to be highly scalable. First, the design services market itself is not very large. For example, India's global success has so far created around 25,000 jobs for designers. Besides, Bangladeshi firms cater only the overflow of demand of multinationals, as opposed to creating the market for it through microchip evolution.
Prospect of attracting multinationals: In the 1960s and 1970s, due to eyesight-related health concerns, multinationals sought locations in less developed countries to set up bonding and testing facilities. At that time, infrastructure, logistics, and favourable tariff structures were sufficient to attract such investments. Unfortunately, that opportunity has largely disappeared. To create a business case today, India has offered up to 75 per cent capital subsidies and 4-6 per cent production-linked incentives to attract investments such as Micron's. Specifically, India offered $1.95 billion in subsidies to attract a $2.7 billion assembly and testing plant from Micron, creating only 5,000 relatively low-paying jobs. Such a subsidy race appears infeasible for Bangladesh to win. Moreover, value addition in outsourced semiconductor assembly and testing (OSAT) is as low as 6 percent. Prospects for attracting foreign direct investment in other segments of the value chain are equally challenging.
As noted, multinationals established assembly and testing facilities in several less developed countries in the 1960s and 1970s, including Malaysia, the Philippines, Thailand, and South Korea. However, these did not evolve into national growth engines. The success stories of South Korea, Japan, and Taiwan stem from scaling up humble beginnings of domestic startups. Notably, in Japan and Taiwan, these initiatives created new markets rather than directly competing with established multinational firms in the USA and Europe. For example, Taiwan's flagship company, TSMC, entered by serving small fabless firms that were overlooked by American companies. Similarly, Japan's Sony pursued opportunities that American firms had rejected. It may, therefore, be reasonable to conclude that the success of Taiwan and Japan in building their semiconductor industries stemmed in part from capitalizing on the decision-making failures of American firms.
Despite the attractiveness of the semiconductor industry, the scalability of Bangladesh's early success in design services appears limited. At the same time, entry barriers in other segments, including OSAT through multinationals, remain very high. Although the expertise of Bangladeshi-origin professionals abroad, the growing supply of local science and engineering graduates, and government support through tax incentives are encouraging, they are not sufficient to scale and expand into other segments to transform the sector into a powerful engine of economic growth. Bangladesh's challenge, therefore, is to identify discontinuities in technology, innovation, and business model dynamics -- similar to those leveraged by Japan and Taiwan -- to enable a modest entry that can scale into a major success through a flywheel or snowball effect.
Rokonuzzaman, Ph.D is academic, researcher and activist on technology, innovation and policy.
Due to signs of saturation in the growth of most industrial sectors, including the ready-made garments (RMG) industry, declining local value addition, and rising graduate unemployment, Bangladesh has been under tremendous pressure to find the next sector for job creation and economic growth. Among many options, the semiconductor industry appears to be beckoning Bangladesh. Despite the opportunity, the entry and scalability barriers of this 78-year-old industry deserve in-depth analysis for the effective and efficient use of national resources. It is worth noting that Bangladesh must invest in thinking and analysis to scale up entry and expand it further in an effective and efficient manner.
The invention of the transistor -- an electronic switch and amplifier -- gave birth to the semiconductor industry in 1947. Over the past 78 years, this invention has grown into an $800 billion industry, with no sign of slowing down. Semiconductors, such as microchips, power nearly all industrial products, from smartphones to missiles. More importantly, this industry offers job opportunities to a diverse group of people, ranging from high-school graduates to those with PhDs in physics or electrical engineering. Hence, due to wage differentials and a growing number of graduates, Bangladesh has reason to feel urgency in leveraging this industry to create jobs and drive economic growth. The obvious question, therefore, is what it takes to scale up and expand. So far, the underlying reasons for optimism have been the large global semiconductor market, a growing pool of science and engineering graduates, the success of Bangladeshi-born semiconductor experts in the USA, and wage differentials. Of course, these are precursors -- but are they sufficient?
Correlation with technology and engineering competence: Semiconductor is a science-, technology-, and engineering-intensive industry. It began with a Nobel Prize-winning invention in physics. Does this imply a linear correlation between relevant scientific, technological, and engineering competence and business success in the semiconductor industry? Perhaps not.
It is worth noting that transistor inventor and Nobel Laureate Dr. Shockley's semiconductor venture in California failed to scale and went bankrupt. Ironically, a radio repair shop (Sony) in war-ravaged Tokyo achieved significant success by licensing transistor technology from Bell Labs. Furthermore, despite past success and a vast patent portfolio, Intel has been struggling to remain competitive. On the other hand, Taiwan, starting from a relatively weak science and engineering base, has grown into a major success story. Similarly, despite India's track record of producing high-caliber engineering graduates from the Indian Institutes of Technology -- and their success in Silicon Valley and top-ranking American engineering schools -- India's last three attempts to develop a semiconductor industry have not scaled into a national economic growth engine. Such realities raise an important question: what else is needed to leverage science and engineering competence to turn semiconductor opportunities into an economic growth driver.
Lesson from RMG and information technology: Bangladesh's RMG sector has successfully created jobs and driven economic growth for 40 years. Did it begin with Bangladesh's skill in tailoring or competence in textile engineering? Perhaps not. Its roots lie in the Multi-Fiber Arrangement (MFA), an international trade pact active from 1974 through 1994 that governed global textile and clothing markets by setting quantitative export quotas. This created an entry opportunity for Bangladesh into global RMG trade. To capitalise on it, foreign buyers and RMG producers supported the initial growth phase of the sector. Unfortunately, no such quota-based opportunity exists in the global semiconductor trade.
The rise of India's export-oriented software and information technology (IT) service industry tempted Bangladesh to follow a similar path. Consequently, Bangladesh made massive investments in expanding computer science education and IT skill development programs. It also invested significantly in improving power supply, internet connectivity, and high-tech parks. Despite these efforts, IT service exports have not scaled to become an economic growth engine comparable to RMG. The underlying reason appears to be that the scale, scope, and externality effects of early entrant India have neutralized Bangladesh's wage advantage in skilled IT labor. Bangladesh has faced similar scaling barriers in call center services and business process outsourcing. In retrospect, the large size of the global market, technological competence, and wage differentials are not sufficient to scale initial success into a major driver of economic growth and job creation.
Bangladesh's semiconductor footprint and its scalability: As early as the 1980s, Bangladesh entered the global semiconductor value chain through a Japanese firm's investment in the Chittagong Export Processing Zone for testing and bonding special-purpose LED lighting devices. Unfortunately, this did not scale in the way Intel's entry into Malaysia -- through a bonding facility for memory chips in Penang -- did. After a long gap, in the 2000s, there was a modest attempt to develop a fabless company through power management integrated circuits, but it did not scale. However, it planted the seeds for ULKASEMI, which now offers high-quality semiconductor design services for OEMs, fabless design houses, and electronic system design companies. Subsequently, a few other design service providers, notably Neural Semiconductor, emerged, creating jobs for more than 1,000 professionals and generating approximately $10 million in revenue.
The semiconductor value chain comprises five major segments: (i) microchip R&D and intellectual property creation for next-generation specifications, (ii) design services to translate specifications into detailed designs, (iii) fabrication (printing designs on silicon wafers, known as foundry), (iv) testing, assembling, and packaging, and (v) equipment, gases, and chemicals. As noted, despite early entry and foreign investment, bonding and testing did not scale. On the other hand, existing design services do not appear to be highly scalable. First, the design services market itself is not very large. For example, India's global success has so far created around 25,000 jobs for designers. Besides, Bangladeshi firms cater only the overflow of demand of multinationals, as opposed to creating the market for it through microchip evolution.
Prospect of attracting multinationals: In the 1960s and 1970s, due to eyesight-related health concerns, multinationals sought locations in less developed countries to set up bonding and testing facilities. At that time, infrastructure, logistics, and favourable tariff structures were sufficient to attract such investments. Unfortunately, that opportunity has largely disappeared. To create a business case today, India has offered up to 75 per cent capital subsidies and 4-6 per cent production-linked incentives to attract investments such as Micron's. Specifically, India offered $1.95 billion in subsidies to attract a $2.7 billion assembly and testing plant from Micron, creating only 5,000 relatively low-paying jobs. Such a subsidy race appears infeasible for Bangladesh to win. Moreover, value addition in outsourced semiconductor assembly and testing (OSAT) is as low as 6 percent. Prospects for attracting foreign direct investment in other segments of the value chain are equally challenging.
As noted, multinationals established assembly and testing facilities in several less developed countries in the 1960s and 1970s, including Malaysia, the Philippines, Thailand, and South Korea. However, these did not evolve into national growth engines. The success stories of South Korea, Japan, and Taiwan stem from scaling up humble beginnings of domestic startups. Notably, in Japan and Taiwan, these initiatives created new markets rather than directly competing with established multinational firms in the USA and Europe. For example, Taiwan's flagship company, TSMC, entered by serving small fabless firms that were overlooked by American companies. Similarly, Japan's Sony pursued opportunities that American firms had rejected. It may, therefore, be reasonable to conclude that the success of Taiwan and Japan in building their semiconductor industries stemmed in part from capitalizing on the decision-making failures of American firms.
Despite the attractiveness of the semiconductor industry, the scalability of Bangladesh's early success in design services appears limited. At the same time, entry barriers in other segments, including OSAT through multinationals, remain very high. Although the expertise of Bangladeshi-origin professionals abroad, the growing supply of local science and engineering graduates, and government support through tax incentives are encouraging, they are not sufficient to scale and expand into other segments to transform the sector into a powerful engine of economic growth. Bangladesh's challenge, therefore, is to identify discontinuities in technology, innovation, and business model dynamics -- similar to those leveraged by Japan and Taiwan -- to enable a modest entry that can scale into a major success through a flywheel or snowball effect.
Rokonuzzaman, Ph.D is academic, researcher and activist on technology, innovation and policy.
Saif
Senior Member
- Jan 24, 2024
- 20,536
- 9,589
- Nation
- Residence
- Axis Group
Is Bangladesh ready to build semiconductor chips?
Bangladesh already possesses some of the components needed to participate in chip manufacturing.
Is Bangladesh ready to build semiconductor chips?
Noshin Nawal
'Bangladesh already possesses some of the components needed to participate in chip manufacturing.' PHOTO: REUTERS
For decades, Bangladesh’s economic identity could be stitched into a clothing label. Readymade garment (RMG) products transformed the country from an aid-dependent economy into a celebrated market presence. The industry became Bangladesh’s principal economic success story, its diplomatic calling card and, increasingly, its comfort zone. That comfort is now being disturbed.
Long celebrated as the world’s second-largest apparel exporter after China, Bangladesh is currently facing mounting competition from Vietnam. Whether the country has already slipped into third place will become clearer with the revelation of latest trade data and how apparel exports are classified, but the broader warning cannot be dismissed.
Vietnam has strengthened its position through better logistics, deeper integration into global trade agreements, higher-value manufacturing, and a more diversified industrial base. Bangladesh, meanwhile, remains heavily dependent on cotton-based, lower-value garments while confronting rising energy costs, banking weakness, and increasingly demanding global buyers.
Losing a place in an international ranking would not, by itself, signal an economic crisis. The RMG industry remains indispensable. But it is a reminder that no comparative advantage lasts forever. A country that has relied on a single export engine for decades must begin thinking seriously about the next one. Prime Minister Tarique Rahman believes that next engine could be semiconductor chips.
At the National Semiconductor Symposium and BEAR Summit 2026, the government declared the industry a national priority, promising incentives, infrastructure, and support designed to position Bangladesh within one of the world’s most strategically important supply chains. It is an appealing vision. Chips power smartphones, vehicles, medical equipment, renewable-energy systems, artificial intelligence, and modern defence technologies. Governments across the world are investing billions to strengthen domestic capabilities and diversify supply chains in this regard.
Bangladesh already possesses some of the components needed to participate in chip manufacturing. It has thousands of engineering graduates, a small but dedicated chip-design sector, and a growing technical diaspora working throughout the global semiconductor chip ecosystem. The mistake would be assuming that participating in the semiconductor industry means building chip factories. The semiconductor chip value chain consists of three distinct activities: chip design; wafer fabrication; and assembly, testing, and packaging. Each step requires fundamentally different combinations of capital, expertise, and infrastructure.
Chip designing involves creating the architecture of integrated circuits and verifying that they function correctly before production. It is highly specialised engineering work that relies on skilled labour and sophisticated software. Wafer fabrication is the opposite. It requires multibillion-dollar fabrication plants, ultra-pure water, specialised chemicals, precision machinery, uninterrupted electricity, and a mature industrial ecosystem built over decades. Assembly, testing, and packaging make up the final stage, where manufactured chips are prepared for commercial use.
Bangladesh may have a realistic semiconductor future, but it does not yet have a realistic fabrication future. According to the Bangladesh Investment Development Authority, the country has more than 700 chip designers, produces over 20,000 computer and electrical engineering graduates annually, and earned more than $8 million from semiconductor exports in 2024. These are modest figures, but they demonstrate that the country is not starting from zero. Local companies already provide design, verification, and embedded systems services to international clients.
Bangladesh’s strongest opportunity therefore lies in becoming a competitive centre for chip design, verification, and product engineering rather than attempting to replicate Taiwan’s manufacturing model. Verification, physical design, and embedded software development all require specialised talent but comparatively modest physical infrastructure. A technically capable engineering workforce operating at competitive costs could become attractive to multinational semiconductor firms seeking to diversify operations beyond established centres such as India and Taiwan. However, inexpensive engineers alone do not create a chip industry. If they did, every developing country with engineering universities would already be designing chips.
Beyond having the right university degree, modern chip development requires practical expertise in electronic-design automation software, verification methodologies, hardware security, timing analysis, power optimisation, and rigorous engineering documentation. Universities therefore need access to industry-standard software, experienced instructors, well-equipped laboratories, internships, and opportunities for engineering students to complete real chip design projects.
The greater challenge for Bangladesh is producing engineers whom international companies will trust with intellectual property worth hundreds of millions of dollars. Trust may ultimately matter as much as technical capability. Semiconductor chip designs rank among the world’s most commercially sensitive assets. Investors will examine Bangladesh’s cybersecurity standards, protection of intellectual property, contract enforcement, regulatory predictability, and the integrity of its digital infrastructure. A single major incident involving stolen designs or compromised customer data could damage confidence across the entire sector.
Infrastructure presents another significant obstacle. Design companies can tolerate occasional power interruptions by relying on backup systems. Testing, packaging, and any future manufacturing operations cannot. Semiconductor businesses require electricity that is not merely available but exceptionally stable. Efficient customs procedures also matter because specialised equipment, engineering samples, and prototype components frequently move across borders under tight commercial deadlines. Bangladesh will therefore require reliable electricity, faster customs clearance, high-quality international digital connectivity, and specialised industrial zones capable of meeting the operational standards expected by global technology firms.
The government’s reported ambition to increase semiconductor exports from $8 million in 2024 to $1 billion by 2030 deserves particular scrutiny. A 125-fold increase in roughly six years would represent extraordinary growth, and such an outcome is conceivable only if one or more major multinational companies establish substantial operations in Bangladesh. As an organic target for the country’s existing industry, however, it appears highly ambitious. Overly optimistic targets carry risks as governments may begin measuring progress through company registrations, training certificates, or promotional announcements rather than genuine industrial capability. And, semiconductor industries are built through accumulated expertise, international credibility, and long-term investment.
A more realistic strategy would be to proceed in stages. During the next several years, Bangladesh should concentrate on expanding chip design, verification, embedded systems, and technical education. Government support should focus on design laboratories at universities, access to commercial design software, overseas fabrication opportunities for locally developed chips, and attracting international semiconductor companies to establish engineering centres in Bangladesh.
As experience and credibility grow, the country could gradually expand into independent testing laboratories, product validation, and advanced packaging. Only after developing reliable infrastructure, an experienced workforce, and sustained customer demand should Bangladesh consider any form of domestic wafer fabrication. Even then, the realistic objective would be mature or specialised chips used in industrial equipment, sensors, power management, and household electronics rather than competing directly with the world’s most advanced fabrication facilities.
Bangladesh can also create considerable value without manufacturing chips domestically by developing intellectual property tailored to national and regional needs, including agricultural sensors, flood-monitoring systems, smart electricity meters, medical devices, and power-management technologies, while relying on established overseas foundries for fabrication. Many successful technology companies own valuable chip designs without operating fabrication plants.
The semiconductor chip initiative therefore deserves both support and scrutiny. Diversifying beyond garments would strengthen Bangladesh’s economic resilience, create highly skilled employment, and integrate the country into one of the world’s fastest-growing industries. But success will not come from summit declarations, renamed technology parks, or ambitious export targets alone.
Bangladesh needs to become a trusted destination for engineering talent, dependable institutions, and world-class technical capability. If it can achieve those foundations, semiconductor design and related services could become a meaningful pillar of the country’s future economy.
The chips may be microscopic, but the challenge is vast. Bangladesh’s next economic transformation will depend entirely on the discipline with which it can turn its ambitions into reality.
Barrister Noshin Nawal is a columnist for The Daily Star.
Noshin Nawal
'Bangladesh already possesses some of the components needed to participate in chip manufacturing.' PHOTO: REUTERS
For decades, Bangladesh’s economic identity could be stitched into a clothing label. Readymade garment (RMG) products transformed the country from an aid-dependent economy into a celebrated market presence. The industry became Bangladesh’s principal economic success story, its diplomatic calling card and, increasingly, its comfort zone. That comfort is now being disturbed.
Long celebrated as the world’s second-largest apparel exporter after China, Bangladesh is currently facing mounting competition from Vietnam. Whether the country has already slipped into third place will become clearer with the revelation of latest trade data and how apparel exports are classified, but the broader warning cannot be dismissed.
Vietnam has strengthened its position through better logistics, deeper integration into global trade agreements, higher-value manufacturing, and a more diversified industrial base. Bangladesh, meanwhile, remains heavily dependent on cotton-based, lower-value garments while confronting rising energy costs, banking weakness, and increasingly demanding global buyers.
Losing a place in an international ranking would not, by itself, signal an economic crisis. The RMG industry remains indispensable. But it is a reminder that no comparative advantage lasts forever. A country that has relied on a single export engine for decades must begin thinking seriously about the next one. Prime Minister Tarique Rahman believes that next engine could be semiconductor chips.
At the National Semiconductor Symposium and BEAR Summit 2026, the government declared the industry a national priority, promising incentives, infrastructure, and support designed to position Bangladesh within one of the world’s most strategically important supply chains. It is an appealing vision. Chips power smartphones, vehicles, medical equipment, renewable-energy systems, artificial intelligence, and modern defence technologies. Governments across the world are investing billions to strengthen domestic capabilities and diversify supply chains in this regard.
Bangladesh already possesses some of the components needed to participate in chip manufacturing. It has thousands of engineering graduates, a small but dedicated chip-design sector, and a growing technical diaspora working throughout the global semiconductor chip ecosystem. The mistake would be assuming that participating in the semiconductor industry means building chip factories. The semiconductor chip value chain consists of three distinct activities: chip design; wafer fabrication; and assembly, testing, and packaging. Each step requires fundamentally different combinations of capital, expertise, and infrastructure.
Chip designing involves creating the architecture of integrated circuits and verifying that they function correctly before production. It is highly specialised engineering work that relies on skilled labour and sophisticated software. Wafer fabrication is the opposite. It requires multibillion-dollar fabrication plants, ultra-pure water, specialised chemicals, precision machinery, uninterrupted electricity, and a mature industrial ecosystem built over decades. Assembly, testing, and packaging make up the final stage, where manufactured chips are prepared for commercial use.
Bangladesh may have a realistic semiconductor future, but it does not yet have a realistic fabrication future. According to the Bangladesh Investment Development Authority, the country has more than 700 chip designers, produces over 20,000 computer and electrical engineering graduates annually, and earned more than $8 million from semiconductor exports in 2024. These are modest figures, but they demonstrate that the country is not starting from zero. Local companies already provide design, verification, and embedded systems services to international clients.
Bangladesh’s strongest opportunity therefore lies in becoming a competitive centre for chip design, verification, and product engineering rather than attempting to replicate Taiwan’s manufacturing model. Verification, physical design, and embedded software development all require specialised talent but comparatively modest physical infrastructure. A technically capable engineering workforce operating at competitive costs could become attractive to multinational semiconductor firms seeking to diversify operations beyond established centres such as India and Taiwan. However, inexpensive engineers alone do not create a chip industry. If they did, every developing country with engineering universities would already be designing chips.
Beyond having the right university degree, modern chip development requires practical expertise in electronic-design automation software, verification methodologies, hardware security, timing analysis, power optimisation, and rigorous engineering documentation. Universities therefore need access to industry-standard software, experienced instructors, well-equipped laboratories, internships, and opportunities for engineering students to complete real chip design projects.
The greater challenge for Bangladesh is producing engineers whom international companies will trust with intellectual property worth hundreds of millions of dollars. Trust may ultimately matter as much as technical capability. Semiconductor chip designs rank among the world’s most commercially sensitive assets. Investors will examine Bangladesh’s cybersecurity standards, protection of intellectual property, contract enforcement, regulatory predictability, and the integrity of its digital infrastructure. A single major incident involving stolen designs or compromised customer data could damage confidence across the entire sector.
Infrastructure presents another significant obstacle. Design companies can tolerate occasional power interruptions by relying on backup systems. Testing, packaging, and any future manufacturing operations cannot. Semiconductor businesses require electricity that is not merely available but exceptionally stable. Efficient customs procedures also matter because specialised equipment, engineering samples, and prototype components frequently move across borders under tight commercial deadlines. Bangladesh will therefore require reliable electricity, faster customs clearance, high-quality international digital connectivity, and specialised industrial zones capable of meeting the operational standards expected by global technology firms.
The government’s reported ambition to increase semiconductor exports from $8 million in 2024 to $1 billion by 2030 deserves particular scrutiny. A 125-fold increase in roughly six years would represent extraordinary growth, and such an outcome is conceivable only if one or more major multinational companies establish substantial operations in Bangladesh. As an organic target for the country’s existing industry, however, it appears highly ambitious. Overly optimistic targets carry risks as governments may begin measuring progress through company registrations, training certificates, or promotional announcements rather than genuine industrial capability. And, semiconductor industries are built through accumulated expertise, international credibility, and long-term investment.
A more realistic strategy would be to proceed in stages. During the next several years, Bangladesh should concentrate on expanding chip design, verification, embedded systems, and technical education. Government support should focus on design laboratories at universities, access to commercial design software, overseas fabrication opportunities for locally developed chips, and attracting international semiconductor companies to establish engineering centres in Bangladesh.
As experience and credibility grow, the country could gradually expand into independent testing laboratories, product validation, and advanced packaging. Only after developing reliable infrastructure, an experienced workforce, and sustained customer demand should Bangladesh consider any form of domestic wafer fabrication. Even then, the realistic objective would be mature or specialised chips used in industrial equipment, sensors, power management, and household electronics rather than competing directly with the world’s most advanced fabrication facilities.
Bangladesh can also create considerable value without manufacturing chips domestically by developing intellectual property tailored to national and regional needs, including agricultural sensors, flood-monitoring systems, smart electricity meters, medical devices, and power-management technologies, while relying on established overseas foundries for fabrication. Many successful technology companies own valuable chip designs without operating fabrication plants.
The semiconductor chip initiative therefore deserves both support and scrutiny. Diversifying beyond garments would strengthen Bangladesh’s economic resilience, create highly skilled employment, and integrate the country into one of the world’s fastest-growing industries. But success will not come from summit declarations, renamed technology parks, or ambitious export targets alone.
Bangladesh needs to become a trusted destination for engineering talent, dependable institutions, and world-class technical capability. If it can achieve those foundations, semiconductor design and related services could become a meaningful pillar of the country’s future economy.
The chips may be microscopic, but the challenge is vast. Bangladesh’s next economic transformation will depend entirely on the discipline with which it can turn its ambitions into reality.
Barrister Noshin Nawal is a columnist for The Daily Star.
