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Semiconductor push: BD outlines vision to join global tech value chain

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Bangladesh has unveiled a strategic roadmap for development of its promising semiconductor industry, aiming to position itself as a competitive player in the global technology value chain.

The National Semiconductor Taskforce, formed on 1 January 2025 under the guidance of the Chief Adviser's Office, has submitted 23 key recommendations, focusing on three priority areas -- building skills, improving the business environment and fostering international collaboration.

The Executive Chairman of the Bangladesh Investment Development Authority (BIDA) and convener of the taskforce, Chowdhury Ashik Mahmud Bin Harun, presented the roadmap at a press conference at the Foreign Service Academy in Dhaka on Thursday.

He said the taskforce had assessed the country's capacity across the semiconductor value chain, including design, fabrication, testing, and packaging, and made recommendations prioritising chip design as well as testing and packaging in the short to medium term.

Given the capital and technology-intensive nature of chip fabrication, it has been earmarked for exploration at a later phase, said the BIDA chairman.

"The global semiconductor market is worth $600 billion, but Bangladesh's share (in it) is negligible-- with only around $6.0 million," Mr. Chowdhury said.

"Yet, many of our talented engineers are already working abroad in this industry. With the right policy support and training systems, Bangladesh can also be a hub for chip design and assembly," he added.

The roadmap outlines phased goals through the short, medium, and long terms.

In the initial stage, the taskforce recommends setting up industry-standard training labs at five public or private institutions by 2027.

The proposed labs will have to be equipped with electronic design automation (EDA) tools, and supported by rotation-based on-site training involving universities and industry players.

Selected universities should offer advanced degrees and diplomas--such as MSc and PhD programmes--in semiconductor design and packaging, it suggested.

To create a skilled workforce for the sector, the taskforce has proposed a national campaign involving hackathons, innovation challenges, and outreach in universities.

"The goal is to produce several thousand skilled engineers every year," Chowdhury said, mentioning that the government's ambition is to transform semiconductors sector into a billion-dollar industry within the next five years," said the BIDA head.

To encourage investment, the taskforce has suggested offering progressive tax exemptions of up to 10 years for semiconductor-related R&D, packaging, and assembly operations.

It has also recommended creation of a dedicated "semiconductor fund" under the ICT Division or Bangladesh Bank to provide venture capital and term financing, following the model used in the country's startup ecosystem.

Bangladesh's potential in the sector is highlighted in BIDA's National Foreign Direct Investment (FDI) Heatmap, identifying semiconductors as a priority industry that needs policy and institutional support.

Mr. Chowdhury believed that if the proposed reforms are implemented, the country would be able to attract investments worth hundreds of millions of dollars, eventually scaling to the billion-dollar range.

"But Bangladesh is still far behind in the global semiconductor race, but with the right steps and strategic focus, we can catch up-and thrive," he said.

Professor Dr A. B. M. Harun-Ur-Rashid, Head of Electrical and Electronic Engineering at BUET and a key contributor to the roadmap, highlighted the importance of a virtual knowledge portal and a tiered certification system based on globally recognised curricula.

"Blending of online and in-person training will allow us to quickly supply design engineers to the market," he said, adding that targeted modules on chip design like RTL-- DFT and STA should be introduced in both universities and technical institutes.

The taskforce also laid emphasis on continuous curriculum updates and faculty development through international collaborations, exchange programmes, and engagement with non-resident Bangladeshi (NRB) experts, particularly those working in Silicon Valley and other global tech hubs.

BIDA's Head of Business Development Nahian Rahman Rochi, and CEO of Ulksemi Mohammed Enayetur Rahman were also present at the press conference.

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