The semiconductor, or chip, sector is set to become one of the most important parts of the 21st-century economy. From mobile phones and computers onward, chips are now a strategic product in a technology-dependent world. To enter that race, the Bangladesh government has taken a landmark decision. In the proposed budget, it has formally declared the technology-dependent chip-making sector and granted it all kinds of tax benefits, which will be available until 2031. Through this, the government has paved the way to become an important partner in this multi-trillion-dollar global economy. With this policy support, the fully export-oriented semiconductor sector’s export earnings, now at $6 million, have a chance to rise to $1 billion over the next five years. Those involved say that, after the ready-made garment sector, the technology sector could become another major export-oriented industry.
In the budget speech for the proposed 2026-27 fiscal year, Finance Minister Amir Khasru Mahmud Chowdhury said that, until June 30, 2031, no import duty above 1 percent, and all regulatory duty, supplementary duty, value-added tax and advance tax, on materials imported for the semiconductor sector would be suspended. A new gazette notification has since been issued by the Finance Ministry to implement these benefits. The government’s incentive package will apply to all firms involved in the full value chain of the semiconductor industry: integrated circuit design, electronic design automation (EDA), outsourced semiconductor assembly and testing (OSAT), and packaging and fabrication.
Taiwan is at the top in producing semiconductors, the essential tiny components of electronic devices. Its name stands above the United States, China and Japan in this competition. The big good news for the technology sector in the budget is that Bangladesh’s name has now been added to that list, the report said. Those involved said the government’s initiative would be a milestone in attracting foreign investment and developing employment and domestic industry. They said the importance of semiconductors in the global market was growing day by day, but Bangladesh had not yet built a significant position in the sector. At present, Bangladesh earns about $6 million a year by designing chips locally. By focusing on chip design and testing in the initial stage, it would be possible to raise that income to $1 billion within the next five years, they said.
Nadim Chowdhury, an associate professor of electrical and electronic engineering at BUET, told Kalbela that the Bangladesh government had recently taken a landmark step to develop the semiconductor industry. Through the NBR gazette notification, it had granted extensive tax and duty exemptions for semiconductor design, integrated circuit development, electronic design automation, outsourced semiconductor assembly and testing, packaging and fabrication, he said. This policy support could take Bangladesh’s technology sector to a new height, he said. The semiconductor industry is currently one of the most important drivers of the world economy. Semiconductor chips are essential in artificial intelligence, smartphones, data centers, automobiles, telecommunications and defense technology. So participation in this industry means not only technological advancement but also high-value exports, skilled human-resource development and an opportunity to attract foreign investment, he said. The biggest benefit here is that customs duty on machinery, software, testing equipment and development platforms used in the semiconductor industry has effectively been limited to 1 percent, and they have been exempted from regulatory duty, VAT, supplementary duty and advance tax, he said.
Nadim Chowdhury said the government’s benefits would significantly reduce the initial investment costs of industrial firms. Leading EDA software such as Cadence and Siemens design tools had been brought under this benefit, he said. This would allow Bangladeshi engineers and firms to carry out international-standard chip-design work and join the global semiconductor value chain. The chance to import development platforms, hardware emulation systems, high-speed oscilloscopes, vector network analyzers, automated test equipment and other advanced testing tools would also significantly boost the research and development capacity of universities, research institutions and the industrial sector, the BUET teacher said.
Those involved said the semiconductor sector incentive could bring several strategic benefits for the country. First, it would ease the path for fabless chip-design companies to grow in Bangladesh. Second, foreign technology firms and investors would become interested in setting up research and design centers in the country. Third, new employment opportunities would be created for highly skilled engineers and researchers. Fourth, over the long term, a foundation would be laid for the development of semiconductor packaging, testing and production-based industry. A historic opportunity has been created for Bangladesh’s young engineers, universities and emerging technology entrepreneurs, they said. With proper implementation, skilled-workforce development and industry-academia cooperation, Bangladesh could become an important semiconductor design and technology innovation hub in South Asia over the next decade, they said. They described it as a strategic investment toward building a knowledge-based economy and a foundation stone for the future technology industry.
According to McKinsey, the global semiconductor market is the most promising industry of the 21st century. It is estimated to reach a trillion-dollar market by 2030. The sector had already reached $600 billion in 2021, growing at 20 percent. Experts believe semiconductors could become Bangladesh’s second-largest export sector after the ready-made garment industry. The government’s concessional benefit will remain a milestone, they said.
The country’s small-scale semiconductor industry has already drawn global attention, according to reports. The domestic firm Ulkasemi is carrying out research and innovation with about 300 engineers, designing semiconductors for companies such as Google, Apple and Facebook. While it is working at the design stage for now, the goal is to move into production. Companies such as Neural Semiconductor, Prime Silicon and Toton Electronics are also working in the field, and large domestic companies have begun moving into the market. From household lights, televisions, refrigerators and ovens to personal mobile handsets, everything is technology-dependent.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report