Bangladesh remains unprepared to enter the trillion-dollar semiconductor industry despite its rapid global growth, with no significant investment or concrete planning in place.
The sector, projected to reach $1 trillion in revenue by 2033, has seen exponential expansion in Asia, but Bangladesh’s contribution last year was limited to just $8 million – earned mainly through freelancers and small private IT firms.
While regional economies have aggressively supported the industry with subsidies, tax breaks, and land allocation, Bangladesh has relied largely on rhetoric. “Taiwan, China, India, and Vietnam – all top-performing countries in semiconductors – have advanced with strong government support.
Bangladesh must provide sustained subsidies and duty-free incentives if it wants to build this industry,” said Prof ASMA Haseeb of BUET’s Department of Nanomaterials and Ceramic Engineering.
Asia’s semiconductor success
Semiconductors, the building blocks of electronic technology, power billions of devices daily. Economic historian Christopher Miller predicted in his 2022 book Chip War that semiconductors would surpass oil in strategic value.
Asia dominates the sector. Taiwan leads with the world’s largest manufacturer, investing $165 billion in the US this year, while announcing a $9.3 billion subsidy program through 2033.
Vietnam’s semiconductor industry, worth $15 billion since 2010, attracted $11.6 billion in foreign direct investment in 2024 alone.
India, producing chips since the 1970s, targets $100 billion revenue by 2030, after announcing a $7 billion incentive in August. Malaysia exported $130 billion worth of semiconductors in 2024, and China exported $142 billion following a $48 billion investment.
Bangladesh falling behind
Despite producing nearly 200,000 engineering graduates annually, Bangladesh has no roadmap for the sector. “Bangladesh is not ready for chip manufacturing but can tap into packaging due to low costs, which could attract foreign investors,” Haseeb suggested.
The Bangladesh Investment Development Authority (BIDA) had projected $3 billion in semiconductor exports within five years back in 2023, but the plan never materialised.
The interim government has since outlined short, medium, and long-term strategies, but investments remain focused on traditional sectors. “We need more investment in semiconductors than in garments. This will diversify exports and build skilled human resources.
A separate investment model is essential,” said Fazlee Shamim Ehsan, President of the Bangladesh Employers Federation.
BIDA’s next steps
BIDA’s Head of Business Development, Nahian Rahman Rochi, said a comprehensive plan is being prepared. “This is a new industry for Bangladesh. To attract investors, we need concrete proposals and solutions to regulatory hurdles. We see strong potential if these steps are taken.”
