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Govt reveals 3-point plan for semiconductor industry

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NN Online:
The Bangladesh Investment Development Authority (BIDA) has outlined a strategic roadmap for developing the country’s semiconductor industry, focusing on three priority areas: skills development, business environment and policy support, and global partnerships.

Executive Chairman of BIDA and Convener of the National Semiconductor Taskforce, Chowdhury Ashik Mahmud Bin Harun, made the announcement at a press conference held at the Foreign Service Academy in Dhaka on Wednesday.

The taskforce, formed on January 1, 2025, under the guidance of the Chief Adviser’s Office, assessed Bangladesh’s potential across the semiconductor value chain—including design, fabrication, testing, and packaging—and recommended prioritizing chip design as well as testing and packaging in the short to medium term.

“Given the capital and technology-intensive nature of fabrication, the taskforce has advised deferring chip manufacturing until substantial progress is made in the initial focus areas,” said Ashik Chowdhury.

The roadmap includes phased targets and specific interventions aimed at positioning Bangladesh as an emerging hub in the global semiconductor ecosystem. Key recommendations include:

Establishing industry-standard training laboratories equipped with Electronic Design Automation (EDA) tools in at least five selected public or private institutions by 2027.

Launching national-level outreach initiatives such as innovation challenges, hackathons, and engagement programs for universities and startups to stimulate interest in semiconductor-related careers.

Creating on-site training rotations between academia and industry to build capacity in chip packaging and testing.

Introducing advanced academic programs—including MSc, PhD, and postgraduate diplomas—in semiconductor fields at select universities.

The taskforce also proposed progressive tax exemptions for up to 10 years for semiconductor-related R&D, assembly, and packaging units, subject to specific criteria. Additionally, it recommended establishing a dedicated “semiconductor fund” under the ICT Division or Bangladesh Bank to provide venture capital and term financing for startups and new initiatives in the sector.

Ashik Chowdhury emphasized the importance of aligning policies to attract foreign direct investment (FDI) in semiconductors, a sector identified as high-priority in BIDA’s National FDI Heatmap.

“The semiconductor industry presents a unique opportunity for Bangladesh to transition into a high-value, high-growth sector,” he said. “We must now harness our engineering talent, including the expertise of Non-Resident Bangladeshis, to focus on chip design and testing stages. With global companies seeking new sourcing destinations, Bangladesh is well-positioned to become a credible player in this space.”

Also speaking at the event, Prof. Dr. A. B. M. Harun-Ur-Rashid, Head of the Electrical and Electronic Engineering Department at BUET, stressed the need for academic alignment with industry demands.

He recommended the creation of a virtual knowledge portal to offer tiered certifications (Level 1–3) backed by a globally recognized curriculum. “These programs will combine online and in-person training, enabling rapid deployment of qualified design engineers into the workforce,” he said.

He also urged universities to introduce advanced electives at the undergraduate level and suggested complementary training modules offering international certifications on specialized topics such as Register Transfer Level (RTL), Synthesis, Design for Testability (DFT), and Static Timing Analysis (STA).

Prof. Harun highlighted the importance of faculty development and international collaboration to keep curricula updated and relevant. “This will require active partnerships with global institutions and engagement with experienced NRB academics,” he noted.

CEO of Ulks, Mohammed Enayetur Rahman, and BIDA’s Head of Business Development, Nahian Rahman Rochi, also spoke at the press conference, expressing optimism about the roadmap’s ability to elevate Bangladesh in the global semiconductor landscape.

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