The global consumer electronics market is experiencing robust growth, driven by advancements in artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML) technologies.
Semiconductors, essential for building integrated chips (ICs) found in electronic devices such as computers, smartphones and laptops, are at the heart of this expansion. Virtually every electronic component in daily use relies on ICs made from semiconductors.
Bangladesh is poised to enter the burgeoning semiconductor industry, though substantial investment and strategic collaboration are essential. A primary challenge is the shortage of skilled labour, highlighting the need for enhanced support for university programmes and closer industry-academia collaboration.
Former state minister for Posts, Telecommunications, and Information Technology Zunaid Ahmed Palak recently stated that Bangladesh has the potential to become a leader in the semiconductor sector by producing 10,000 professionals and experts. With a well-defined roadmap and effective policies, the industry could reach a valuation of $10 billion by 2041.
According to Fortune Business Insights, the global semiconductor market was valued at $611.35 billion in 2023 and is projected to grow to $681.05 billion in 2024, eventually reaching $2062.59 billion by 2032. This presents a significant opportunity for Bangladesh.
To seize this opportunity, experts emphasise the importance of investing in chip testing and packaging services, training skilled professionals, and funding universities to establish research and development laboratories.
Investment, skills key for chip design leadership
Professor Dr ABM Harun-Ur-Rashid, head of the Department of Electrical and Electronic Engineering at BUET, emphasized the potential for Bangladesh to lead in chip design outsourcing services. "Bangladesh should lead the chip design outsourcing sector now because it involves many young, talented engineers and requires minimal capital investment," he said.
He further advised that moderate investments should be made in chip testing and packaging services, which necessitate skilled engineers. However, he cautioned against immediate entry into chip fabrication due to the advanced and rapidly evolving nature of semiconductor technology.
"Establishing a fabrication factory demands substantial investment—upwards of $5 billion for older technology nodes and at least $20 billion for state-of-the-art nodes. This also requires a significant number of skilled engineers across multiple domains, a resource currently insufficient in Bangladesh," Dr Harun-Ur-Rashid explained.
Highlighting the gap in experienced professionals, he said, "While we have many entry-level engineers, there is a serious shortage of skilled designers with 10 to 15 years of experience who can lead advanced design projects in the industry."
Advanced training and support crucial
Dr Harun-Ur-Rashid also pointed out the need for enhanced educational support, saying, "The engineering universities in Bangladesh offer basic courses in IC design, but this is not enough. The government must support advanced training in very-large-scale integration (VLSI) chip design by providing funds, incentives and policy support."
The Enhancing Digital Government and Economy (EDGE) project, spearheaded by the Bangladesh Computer Council (BCC) under the ICT Division, has focused on developing skilled human resources in microchip design through the Bangladesh University of Engineering and Technology (BUET).
As part of this initiative, the government has allocated $10 million to establish a nano lab at BUET for fundamental semiconductor research. Over 1,000 trained Bangladeshi engineers are already working in four local companies, contributing to the production and export of semiconductors to various countries.
Professor Dr ABM Harun-Ur-Rashid expressed concerns about the project's limitations. "The EDGE project is not enough because it requires that 80 per cent of the trainees be provided a VLSI design job immediately after training, which is quite difficult to implement," he stated.
He recommended that the government directly fund universities through a Special Manpower Development Program (SMDP) in VLSI, similar to a programme India has been running for the past 30 years. He also suggested that the government support special Master's and PhD programmes in VLSI or semiconductor areas at leading universities.
Policy support crucial to catching leading race
In 2023, the Asia Pacific region led the global semiconductor industry, generating $308.95 billion in revenue. This growth was significantly driven by key players such as Taiwan Semiconductor Manufacturing Company Limited (TSMC), which holds nearly 60 per cent of the market share.
The global trade of semiconductors reached $1.7 trillion in 2019, according to the IHS Global Trade Atlas. Projections indicate that by 2030, the global semiconductor industry will expand to a $1.5 trillion market.
To bolster its IT sector, the Bangladesh Hi-Tech Park Authority aims to increase its value from $1 billion to $5 billion by 2025. This initiative includes exploring advanced training opportunities for local engineers abroad and offering incentives to semiconductor manufacturers.
Barrister Md Golam Sorwar Bhuiyan, director (Technical) of Bangladesh Hi-Tech Park Authority, said, “We have plans to establish a testing laboratory to meet the needs of semiconductor industry investors. Skill-development training will be provided under a World Bank (WB) project to attract more investment in these sectors. We have already initiated discussions with them for financing.”
Golam Sorwar also acknowledged the necessity of policy support, particularly concerning intellectual property rights at the semiconductor fabrication stage. Additionally, he mentioned that the ICT Division is actively developing policies to facilitate the growth of the industry.
Industry eyes 20-30% annual growth
Bangladesh is actively participating in the semiconductor industry, concentrating on chip design services, assembly, and testing. Since 2007, companies such as Ulkasemi, Neural Semiconductor Limited and PrimeSilicon have established a global presence in chip design services, collectively generating over $6 million in revenue.
Mohammad Enayetur Rahman, founder, CEO, and president of Ulkasemi, has observed a significant increase in work orders and specification negotiations from global technology giants like Apple, Google and Facebook.
"Bangladesh's capabilities have become well-recognised in the prefabrication stage among our global clients. With the government's support in resource development, our goal is to achieve an annual growth of 20 to 30 per cent," he stated.
To further develop the sector, the Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI) has identified five key areas for Bangladesh to enter - enhancing chip design services, building fabless companies, offering outsourced semiconductor assembly and test (OSAT) services, providing foundry services, and driving product innovation.
