A significant area of the world economy, the semiconductor business is rapidly expanding. This business is anticipated to keep expanding in the near future due to the development of technological advancements and the rising demand for electronic devices. Bangladesh can tap into this industry and profit from its prosperity thanks to its advantageous location and expanding economy.

Manufacturing semiconductor chips is still a new industry. While Ulkasemi, Neural Semiconductor, Prime Silicon, and Toton Electronics have so far served the Bangladesh industry, two more major firms, ACI and Walton, are also poised to enter the market, which is anticipated to reach the enormous trillion-dollar threshold by 2030. But just the beginning of the labor-intensive process—which also includes silicon refinement, intellectual property, equipment, precision chemical processing, bonding, assembling, and packaging—results in the design of a chip. 

According to Trading Economics, Bangladesh’s average monthly wage for labor is just 101 USD, while it is 135 USD in Myanmar, 170 USD in Cambodia, and 518 USD in China. The burgeoning semiconductor manufacturing sector in Bangladesh benefits from these low labor costs. In 2020, the silicon-based computer hardware chips market was estimated to be worth USD 425 billion globally. Bangladesh makes up to USD 5 million annually from designing semiconductor chips, which is a pittance in comparison.

However, Bangladesh has made tremendous infrastructural development gains in recent years, fostering a favorable economic environment. The nation can potentially become a major force in the semiconductor industry with the correct backing and investments. Markedly, Ten to twelve IT villages, Silicon City, Electronic City, IT incubators, and ICT parks, such as the Bangabandhu High-Tech Park and the Jashore Software Technology Park, have been established by the government. These parks offer investors plots on simple terms with tax holiday benefits.

In recent years, the government has taken several initiatives to promote the semiconductor industry, such as establishing the Bangladesh Association of Software and Information Services (BASIS) and the Bangladesh Hi-Tech Park Authority. These initiatives aim to create an enabling environment for the growth of the semiconductor industry in the country. According to government sources, the Bangladesh Hi-Tech Park Authority has secured investment initiatives from 79 companies. The plausible investment will be USD 1264.84 million. Here some 419 million USD will come from abroad. A 35-acre tract of land is available to foreign investors.

Besides, Bangladesh has a sizable labor force that is highly educated and skilled. The nation boasts a robust educational system with numerous colleges and technical institutions offering programs in engineering, computer science, and other relevant subjects. There is a consistent flow of talent that can support the expansion and advancement of the semiconductor sector. Bangladesh is also the perfect site for semiconductor manufacturing due to its strategic location and easy access to ports. The nation is conveniently located at the intersection of South and Southeast Asia, giving it quick access to its largest markets.

Bangladesh must concentrate on luring foreign direct investment (FDI) and building specialized IT zones for manufacturing to compete in the enormous semiconductor market. Most of the nation’s semiconductor activities are currently small-scale; to grow, investment in infrastructure, human resources, and research and development must rise.

The government can incentivize investors, such as tax rebates, simplified rules, and access to inexpensive labor, to draw FDI. The government might also designate specific IT zones where businesses can set up manufacturing plants with the required support and infrastructure.

The development of the semiconductor sector depends on technical education, so the government must invest in raising the standard of technical education. This includes expanding the number of colleges and universities that offer programs in engineering, computer science, and related disciplines. The government should promote partnerships between businesses and academics so that they can collaborate to train students and provide them with real-world experience. Nevertheless, 500 Bangladeshis work for Intel. It’s a brain drain. They could return if we could develop the industry and offer them opportunities.

In addition, the government needs to encourage and finance semiconductor sector research and development efforts. This can assist local businesses in growing their capacities and competing on a global scale.

Bangladesh has the potential to become a key player in this fast-expanding industry with the correct investment and support. The government and the business sector should collaborate to take advantage of this chance and build a successful future for the nation.