[🇧🇩] Semiconductor Industry in Bangladesh

[Saif]

I think beating the Chinese and Taiwanese at manufacturing semiconductors at scale (using a FAB) is an impossible dream. And I'd say for Indians as well, remember I said "at scale".

Producing one or two for research is one thing - and being commercially successful at it is entirely something else.

However Bangladesh can easily take the lead and "design" semiconductors at the world's lowest cost.

That is where our strength is - intellectual capital. Most of the "designing" of semiconductors is termed EDA (Electronic Design Automation).

Electronic design automation - Wikipedia

en.wikipedia.org

Question is - "Can Bangladesh be successful in the design of semiconductor chips?"

Yes. Bangladesh can realistically become successful in semiconductor chip design, even if it does not become a major chip manufacturing country. Those are very different businesses.

The emergence of companies like Ulka Semi is notable because it reflects a trend toward the part of the semiconductor value chain that depends primarily on engineering talent rather than multi-billion-dollar fabrication plants.

Here's how the opportunity breaks down:

Why chip design is feasible​

Designing integrated circuits requires:

• -Highly skilled electrical and computer engineers
• -Access to electronic design automation (EDA) software
• -Collaboration with foundries overseas for manufacturing
• -Strong verification and testing expertise

Unlike fabrication, chip design does not require building a $20–50+ billion semiconductor fab.

Many successful semiconductor companies are "fabless," meaning they design chips and outsource manufacturing to foundries.

Bangladesh's advantages​

Bangladesh already has several strengths:

• -A large and growing pool of software engineers.
• -Strong university programs in electrical engineering and computer science.
• -Competitive engineering salaries compared with North America and Europe.
• -Experience serving global technology companies through outsourcing.

Moving from software into digital hardware design is challenging, but many of the underlying skills—programming, algorithms, verification, and automation—are transferable.

Where companies like Ulka Semi fit​

Companies such as Ulka Semi demonstrate that Bangladesh can participate in areas like:

• -Digital IC design
• -Verification
• -Physical design
• -Design-for-test (DFT)
• -ASIC development
• -System-on-chip (SoC) engineering

These are valuable services that multinational semiconductor firms increasingly distribute across global engineering centers.

Challenges​

There are significant obstacles:

• -A shortage of experienced semiconductor engineers.
• -Limited access to expensive commercial EDA tools for startups and universities.
• -Few local semiconductor ecosystems compared with established hubs.
• -Limited venture capital focused on deep-tech hardware.
• -Brain drain to countries with more mature semiconductor industries.

Building expertise takes years because semiconductor design has a steep learning curve.

Lessons from other countries​

Several countries started from a similar position:

• Vietnam has become an important destination for semiconductor design and engineering through investment in education and partnerships with global firms.
• Malaysia built strengths in semiconductor assembly, testing, and increasingly design.
• India spent decades developing engineering talent before becoming a major global center for chip design, with many multinational companies operating design centers there.

These examples suggest that a country's semiconductor capabilities can develop incrementally rather than requiring immediate leadership in manufacturing.

Where Bangladesh is most likely to succeed​

The strongest opportunities over the next decade are likely to be:

1. -Design verification
2. -Physical design
3. -Analog and mixed-signal IP
4. -Embedded systems
5. -AI accelerator design
6. -Automotive electronics
7. -Custom ASIC design for overseas clients

These segments require skilled engineers more than heavy industrial infrastructure.

Outlook​

Bangladesh is unlikely to become a leading semiconductor manufacturing nation in the near future, because fabrication demands enormous capital investment, reliable utilities, and a mature supply chain.

However, it has a credible opportunity to build a competitive semiconductor design industry. If companies like Ulka Semi continue to grow, universities expand specialized training, and international semiconductor firms establish engineering teams in the country, Bangladesh could develop into a recognized regional hub for chip design and related engineering services over the next 10–20 years. The key constraints are talent development, industry experience, and sustained investment rather than any fundamental technical barrier.

You have put a lot of efforts into the post. Very informative.

 

[Saif]

Can semiconductors become the country’s next growth engine?

Bangladesh's ambition to enter the global semiconductor industry marks one of the boldest economic visions the country has embraced in recent years. For decades, the readymade garment (RMG) sector has served as the principal engine of export growth, employment generation and industrialisation. Yet

thefinancialexpress.com.bd

Can semiconductors become the country’s next growth engine?

Bangladesh's ambition to enter the global semiconductor industry marks one of the boldest economic visions the country has embraced in recent years. For decades, the readymade garment (RMG) sector has served as the principal engine of export growth, employment generation and industrialisation. Yet no growth model remains sufficient forever. As the global economy shifts towards knowledge-intensive industries, Bangladesh too must search for its next frontier. The government's declaration that semiconductors could become the country's next major growth driver therefore deserves careful attention-not merely as an announcement of policy but as a statement of national aspiration.

The semiconductor chip has become the invisible heart of modern civilisation. From smartphones and laptops to medical devices, automobiles, renewable energy systems, satellites and artificial intelligence, virtually every technological innovation depends on these tiny electronic components. Unsurprisingly, the global semiconductor industry continues to expand rapidly, with market estimates suggesting that its value could approach one trillion US dollars by the end of this decade. The opportunities are immense, but so is the competition.

Against this backdrop, Bangladesh's desire to secure a place in this highly sophisticated value chain reflects a welcome change in development thinking. Rather than relying indefinitely on labour-intensive manufacturing, the country is beginning to recognise that future competitiveness will increasingly depend on innovation, engineering capability and advanced technological expertise.

The government's recent initiatives indicate an understanding of what such a transformation demands. Withdrawal of taxes and duties on raw materials used in semiconductor manufacturing, planned cash incentives for semiconductor design exports, startup grants for technology entrepreneurs, and commitments to modernise high-tech parks all point towards creating an enabling ecosystem. Equally encouraging is the proposal to establish biotechnology and deep-tech infrastructure alongside semiconductor development, signalling a broader vision of a knowledge-based economy.

However, building a semiconductor industry is far more complex than announcing incentives. Unlike conventional manufacturing, semiconductor production requires a highly skilled workforce, world-class research facilities, reliable electricity, ultra-clean manufacturing environments, sophisticated supply chains and enormous long-term investments. Even many developed nations continue to struggle to establish competitive semiconductor fabrication facilities despite possessing advanced industrial bases.

This reality suggests that Bangladesh should adopt a pragmatic rather than overly ambitious approach. Instead of attempting to compete immediately in capital-intensive chip fabrication, the country may find greater opportunities in semiconductor design, embedded systems, chip testing, advanced packaging and specialised engineering services. These segments demand considerably lower capital investment while allowing countries with strong human resources to integrate into global value chains.

Fortunately, Bangladesh possesses one valuable asset that cannot easily be replicated-its young population. Thousands of Bangladeshi engineers already work successfully in semiconductor companies, research laboratories and technology firms across the United States, Japan, South Korea, Singapore, Malaysia and Europe. Their achievements demonstrate that the country's talent is internationally competitive when provided with the right education and opportunities.

The challenge lies in creating conditions that encourage this expertise to contribute meaningfully to national development. Building effective collaboration between universities, industry and the Bangladeshi technology diaspora could significantly accelerate knowledge transfer. Academic curricula must evolve rapidly to include semiconductor design, microelectronics, material science, integrated circuit engineering and related disciplines. Universities should also strengthen partnerships with international research institutions to expose students to cutting-edge technologies.

Private industries will likewise have to play a decisive role. Government policy can create incentives, but innovation ultimately flourishes where entrepreneurs are willing to invest, experiment and assume commercial risks. Local technology companies should be encouraged to collaborate with global semiconductor firms through joint ventures, research partnerships and specialised service contracts. Such collaborations would help domestic firms gradually acquire technical expertise while gaining access to international markets.

Infrastructure remains another indispensable requirement. Reliable electricity, uninterrupted digital connectivity, efficient logistics, intellectual property protection and transparent regulatory systems are prerequisites for attracting high-value technology investment. Investors in advanced manufacturing seek policy consistency above all else. Long-term confidence cannot be built on frequent regulatory shifts or administrative uncertainty.

There is also an important lesson from Bangladesh's own economic history. The garment industry did not emerge overnight. It evolved over decades through persistent entrepreneurship, international partnerships, policy support and continuous learning. The semiconductor sector, being vastly more sophisticated, will require even greater patience. Expectations should therefore remain realistic. Success should be measured not by immediate establishment of billion-dollar fabrication plants but by gradual expansion of design capabilities, research output, skilled employment and technology exports.

Moreover, Bangladesh should avoid viewing semiconductors simply as another export sector. Their importance extends far beyond foreign exchange earnings. A domestic semiconductor ecosystem would strengthen the country's broader digital transformation by supporting industries such as artificial intelligence, robotics, medical technology, telecommunications, renewable energy and smart manufacturing. In other words, investment in semiconductors has the potential to stimulate innovation across multiple sectors of the economy.

Ultimately, the aspiration to become a participant in the global semiconductor industry represents more than an industrial policy. It reflects Bangladesh's desire to redefine its economic identity in an era increasingly shaped by technology and innovation. Whether that aspiration becomes a reality will depend less on ambitious declarations than on sustained investment in education, research, institutional capacity and industrial competitiveness.

The journey will undoubtedly be long and demanding. Yet every successful technology-focused nation once stood where Bangladesh stands today-facing uncertainty but willing to invest in the future. If policymakers remain committed, universities become centres of innovation, industry embraces technological transformation and talented young engineers receive opportunities at home, the country's semiconductor ambitions may eventually evolve from aspiration into achievement.

The future of Bangladesh's economy need not be confined to the remarkable success story of garments. With vision, complemented by patience and perseverance, the silicon chip may one day stand beside the stitched fabric as another enduring symbol of the nation's economic transformation.​

 

[Bilal9]

Can semiconductors become the country’s next growth engine?

Bangladesh's ambition to enter the global semiconductor industry marks one of the boldest economic visions the country has embraced in recent years. For decades, the readymade garment (RMG) sector has served as the principal engine of export growth, employment generation and industrialisation. Yet

thefinancialexpress.com.bd

Can semiconductors become the country’s next growth engine?

View attachment 28646

Bangladesh's ambition to enter the global semiconductor industry marks one of the boldest economic visions the country has embraced in recent years. For decades, the readymade garment (RMG) sector has served as the principal engine of export growth, employment generation and industrialisation. Yet no growth model remains sufficient forever. As the global economy shifts towards knowledge-intensive industries, Bangladesh too must search for its next frontier. The government's declaration that semiconductors could become the country's next major growth driver therefore deserves careful attention-not merely as an announcement of policy but as a statement of national aspiration.

The semiconductor chip has become the invisible heart of modern civilisation. From smartphones and laptops to medical devices, automobiles, renewable energy systems, satellites and artificial intelligence, virtually every technological innovation depends on these tiny electronic components. Unsurprisingly, the global semiconductor industry continues to expand rapidly, with market estimates suggesting that its value could approach one trillion US dollars by the end of this decade. The opportunities are immense, but so is the competition.

Against this backdrop, Bangladesh's desire to secure a place in this highly sophisticated value chain reflects a welcome change in development thinking. Rather than relying indefinitely on labour-intensive manufacturing, the country is beginning to recognise that future competitiveness will increasingly depend on innovation, engineering capability and advanced technological expertise.

The government's recent initiatives indicate an understanding of what such a transformation demands. Withdrawal of taxes and duties on raw materials used in semiconductor manufacturing, planned cash incentives for semiconductor design exports, startup grants for technology entrepreneurs, and commitments to modernise high-tech parks all point towards creating an enabling ecosystem. Equally encouraging is the proposal to establish biotechnology and deep-tech infrastructure alongside semiconductor development, signalling a broader vision of a knowledge-based economy.

However, building a semiconductor industry is far more complex than announcing incentives. Unlike conventional manufacturing, semiconductor production requires a highly skilled workforce, world-class research facilities, reliable electricity, ultra-clean manufacturing environments, sophisticated supply chains and enormous long-term investments. Even many developed nations continue to struggle to establish competitive semiconductor fabrication facilities despite possessing advanced industrial bases.

This reality suggests that Bangladesh should adopt a pragmatic rather than overly ambitious approach. Instead of attempting to compete immediately in capital-intensive chip fabrication, the country may find greater opportunities in semiconductor design, embedded systems, chip testing, advanced packaging and specialised engineering services. These segments demand considerably lower capital investment while allowing countries with strong human resources to integrate into global value chains.

Fortunately, Bangladesh possesses one valuable asset that cannot easily be replicated-its young population. Thousands of Bangladeshi engineers already work successfully in semiconductor companies, research laboratories and technology firms across the United States, Japan, South Korea, Singapore, Malaysia and Europe. Their achievements demonstrate that the country's talent is internationally competitive when provided with the right education and opportunities.

The challenge lies in creating conditions that encourage this expertise to contribute meaningfully to national development. Building effective collaboration between universities, industry and the Bangladeshi technology diaspora could significantly accelerate knowledge transfer. Academic curricula must evolve rapidly to include semiconductor design, microelectronics, material science, integrated circuit engineering and related disciplines. Universities should also strengthen partnerships with international research institutions to expose students to cutting-edge technologies.

Private industries will likewise have to play a decisive role. Government policy can create incentives, but innovation ultimately flourishes where entrepreneurs are willing to invest, experiment and assume commercial risks. Local technology companies should be encouraged to collaborate with global semiconductor firms through joint ventures, research partnerships and specialised service contracts. Such collaborations would help domestic firms gradually acquire technical expertise while gaining access to international markets.

Infrastructure remains another indispensable requirement. Reliable electricity, uninterrupted digital connectivity, efficient logistics, intellectual property protection and transparent regulatory systems are prerequisites for attracting high-value technology investment. Investors in advanced manufacturing seek policy consistency above all else. Long-term confidence cannot be built on frequent regulatory shifts or administrative uncertainty.

There is also an important lesson from Bangladesh's own economic history. The garment industry did not emerge overnight. It evolved over decades through persistent entrepreneurship, international partnerships, policy support and continuous learning. The semiconductor sector, being vastly more sophisticated, will require even greater patience. Expectations should therefore remain realistic. Success should be measured not by immediate establishment of billion-dollar fabrication plants but by gradual expansion of design capabilities, research output, skilled employment and technology exports.

Moreover, Bangladesh should avoid viewing semiconductors simply as another export sector. Their importance extends far beyond foreign exchange earnings. A domestic semiconductor ecosystem would strengthen the country's broader digital transformation by supporting industries such as artificial intelligence, robotics, medical technology, telecommunications, renewable energy and smart manufacturing. In other words, investment in semiconductors has the potential to stimulate innovation across multiple sectors of the economy.

Ultimately, the aspiration to become a participant in the global semiconductor industry represents more than an industrial policy. It reflects Bangladesh's desire to redefine its economic identity in an era increasingly shaped by technology and innovation. Whether that aspiration becomes a reality will depend less on ambitious declarations than on sustained investment in education, research, institutional capacity and industrial competitiveness.

The journey will undoubtedly be long and demanding. Yet every successful technology-focused nation once stood where Bangladesh stands today-facing uncertainty but willing to invest in the future. If policymakers remain committed, universities become centres of innovation, industry embraces technological transformation and talented young engineers receive opportunities at home, the country's semiconductor ambitions may eventually evolve from aspiration into achievement.

The future of Bangladesh's economy need not be confined to the remarkable success story of garments. With vision, complemented by patience and perseverance, the silicon chip may one day stand beside the stitched fabric as another enduring symbol of the nation's economic transformation.​

Manufacturing semiconductors are done in FABs. Bangladesh has no chance trying to be a semiconductor manufacturer and should not waste Billions of dollars trying to build one, unless they are more backdated niche products like for power electronics. The high tech semiconductor industry logistics is very tightly controlled and is in the hands of the USA, Germany, Taiwan, Korea, Japan and China. Bangladesh will not have access to this technology.

But what is a FAB?

In the microelectronics industry, a semiconductor fabrication plant, also called a FAB or a foundry, is a factory where integrated circuits (ICs) are manufactured.

The cleanroom is where all fabrication takes place and contains the machinery for integrated circuit production such as steppers and/or scanners for photolithography, etching, cleaning, and doping. The technology is incredibly complex.

Prices for pieces of equipment for the processing of 300mm wafers range to upwards of $4 million each with a few pieces of equipment reaching as high as $340 million (e.g. EUV scanners). A typical fab will have several hundred equipment items. Semiconductor fabrication requires many expensive devices. Estimates put the cost of building a new fab at over one billion U.S. dollars with values as high as tens of billions of dollars not being uncommon.

For example, TSMC invested over $45 billion into a new FAB for their 2nm process. Only one or two companies are able to manufacture photolithography equipment for this purpose, such as ASML in Holland. They will not even sell to Chinese mfrs., much less to mfrs. in Bangladesh.

A foundry model emerged in the 1990s: Companies owning FABs that produced their own designs were known as integrated device manufacturers (IDMs). Companies that outsourced manufacturing of their designs were termed fabless semiconductor companies. Those foundries which did not create their own designs were called pure-play semiconductor foundries.

I don't know who in Bangladesh has these dreams of trying to manufacture semiconductors in Bangladesh. Mainly clueless uneducated people.

However semiconductor DESIGN is doable in Bangladesh. That is outsourced from the likes of Intel, AMD and niche players like ST electronics in Europe.

 

[Saif]

https://www.newagebd.net/post/opinion/309570/semiconductor-industry-step-by-step

Semiconductor industry: step by step

If Bangladesh consistently builds the required capabilities over the next 10 to 15 years, it can establish a meaningful position in the global semiconductor and advanced electronics value chain, writes MM Shahidul Hassan

For several decades, Bangladesh’s economy has been driven largely by labour-intensive industries. The ready-made garment sector has been the country’s principal engine of economic growth. In fiscal year 2024–25, garment exports earned approximately $39.35 billion, accounting for more than 80 per cent of Bangladesh’s merchandise exports and providing employment for around 4.4 million people. The leather and leather products sector also remains an important export industry, generating about $1.14 billion annually in export earnings.

However, the global industrial landscape is changing rapidly. The widespread adoption of artificial intelligence, automation, robotics and digital technologies is transforming manufacturing worldwide, making it increasingly difficult to compete primarily on low labor costs in the coming years. To adapt, Bangladesh must pursue a dual strategy: modernising existing industries through technology while simultaneously developing high-value, knowledge-intensive sectors. Automation, robotics, embedded systems, industrial electronics and advanced manufacturing can significantly improve the productivity and competitiveness of the country’s established manufacturing sectors. Within this broader technological transformation, the semiconductor sector offers an important strategic opportunity.

Because a large portion of the workforce lacks school degree, workers risk displacement as industries adopt new technologies, potentially causing social unrest. At the same time, workers should receive continuous, workplace-based micro-skilling in areas such as predictive maintenance, digital logistics, data annotation and AI-assisted industrial operations.

Recognising its significance, the Government of Bangladesh has established a National Semiconductor Taskforce under the Bangladesh Investment Development Authority. The sector has the potential not only to diversify exports but also to help move the economy towards higher-value technological activities.

A common misconception, however, is that entering the semiconductor industry means building semiconductor fabrication plants. In reality, semiconductor manufacturing represents only one segment of a vast global value chain. The industry encompasses research and development, chip design, intellectual property, electronic design automation, wafer fabrication, assembly, packaging, testing, reliability engineering, semiconductor equipment, materials and a wide range of electronic applications.

Different Asian economies have successfully positioned themselves in different segments of this value chain. Taiwan dominates foundry manufacturing; South Korea leads in memory semiconductors; Japan excels in semiconductor materials and manufacturing equipment; India has emerged as a major hub for chip design and engineering services; while Malaysia, the Philippines and Vietnam have established strong positions in assembly, packaging and testing. Their experiences demonstrate that there is no single pathway into the semiconductor industry.

For Bangladesh, the critical question should not be whether the country should immediately build a semiconductor fabrication plant. Rather, it should ask where it can establish a competitive position within the global semiconductor value chain and how it can build the necessary capabilities step by step.

Given Bangladesh’s current industrial and technological capabilities, establishing an advanced wafer fabrication plant at this stage would not be neither realistic nor economically prudent. Such facilities require enormous capital investment, highly specialised human resources, uninterrupted supplies of high-quality electricity and ultra-pure water, sophisticated infrastructure, specialised equipment and materials and strong international technology partnerships. Moreover, long-term commercial viability depends on sustained market demand and integration into global supply chains.

Bangladesh should therefore adopt a phased, capability-driven strategy rather than pursuing fabrication as an immediate objective. The country’s priorities should be determined by technological readiness, available human capital, investment capacity and market opportunities, not by national prestige.

A realistic roadmap for the period 2026–2035 should focus on gradually building capabilities that can position Bangladesh as a meaningful participant in the global semiconductor ecosystem.

Developing capabilities in chip design, verification, embedded systems, electronic design automation and other semiconductor engineering services require comparatively modest capital investment. Bangladesh can leverage its engineering graduates as well as experienced Bangladeshi professionals working in global semiconductor companies and universities.

Establishing specialised laboratories and commercial facilities for semiconductor testing, measurement, reliability assessment and failure analysis could support both the domestic electronics industry and international clients.

In partnership with leading international technology companies, gradually develop semiconductor assembly, packaging and, where economically viable, advanced packaging capabilities. This could become Bangladesh’s first significant manufacturing opportunity within the global semiconductor value chain.

Utilising the capabilities developed in earlier stages to manufacture embedded systems, sensors, power electronics, industrial automation equipment and other high-value electronic products are increasingly important for smart manufacturing, renewable energy systems, medical devices, agriculture technology and the Internet of Things.

Bangladesh should focus on selected areas where it can build competitive advantages, such as industrial automation, smart devices, power electronics and electronic systems for domestic industries. This phase will help transform the country from a consumer of imported technologies into a producer of technology-based products while creating new opportunities for innovation and exports.

Only after Bangladesh has developed adequate technological capability, infrastructure, skilled manpower, investment capacity and market access should it consider selected or specialised semiconductor manufacturing. Such decisions should be driven by economic feasibility and market demand rather than national prestige.

The semiconductor industry should not be viewed as an alternative to the RMG sector. Rather, Bangladesh should use advanced technologies to modernise and strengthen its existing industries while simultaneously developing new high-value sectors.

The country’s considerable strengths — a large engineering education system, a young workforce and an extensive network of experienced Bangladeshi engineers and researchers working in leading technology companies and universities around the world — should be harnessed through coordinated collaboration among the government, universities, industry and the Bangladeshi engineering diaspora.

If Bangladesh consistently builds the required capabilities over the next 10 to 15 years, it can establish a meaningful position in the global semiconductor and advanced electronics value chain. The country does not need to imitate Taiwan or South Korea. Instead, it should build on its own strengths and create its own place in the global semiconductor ecosystem — step by step, guided by economic realities, strategic planning and long-term national commitment.

MM Shahidul Hassan, a retired professor at Bangladesh University of Engineering and Technology, is a distinguished professor at Eastern University.​