Chip industry seeks Bida’s backing to build $1b export hub
Bangladesh's semiconductor industry, still in its infancy, has outlined an ambitious vision to emerge as a $1 billion export hub for chips and embedded systems by 2030.
To get there, industry leaders are turning to Bangladesh Investment Development Authority (Bida), asking it to play a central role in policy support, international branding, and incentive facilitation.
For all latest news, follow The Daily Star's Google News channel. The Bangladesh Semiconductor Industry Association (BSIA), representing local companies and professionals, placed a set of proposals before the Bida yesterday. The Daily Star has seen a copy of the proposal.
At their core is a call for a public-private partnership that would combine the authority's global reach and regulatory muscle with the industry's technical expertise and on-the-ground knowledge.
The proposals arrive at a moment of global realignment. The semiconductor industry, valued at $618 billion in 2023, is projected to cross $1 trillion by 2030.
The embedded systems segment, comprising chips and software that power everything from medical devices to smart cities, is expected to exceed $160 billion in the same period.
Bangladesh's semiconductor industry currently has around 20 companies, with 13 registered under the BSIA.
The sector employs approximately 800 to 1,000 engineers and professionals. Annual exports remain modest, at about $8 million to $10 million, highlighting significant growth potential as the industry seeks to scale and enter global markets.
BRANDING BANGLADESH GLOBALLY
The first pillar of the BSIA's proposal is international branding.
Countries like Vietnam and Malaysia have aggressively marketed themselves as semiconductor destinations, staging roadshows and wooing global clients. Bangladesh, the industry fears, risks being invisible in this competition.
The BSIA has asked the Bida to lead roadshows in Japan, South Korea, Taiwan, Malaysia, and the United States.
Local firms would participate alongside, showcasing their capabilities. Such visibility, the association argues, is crucial for Bangladesh to be taken seriously in supply chain discussions.
Another area of focus is the country's vast diaspora. A significant number of Bangladeshi engineers are employed at global giants in Silicon Valley, Singapore, and Taipei.
Many have expressed willingness to invest or transfer knowledge, but red tape has often stood in the way.
The proposal calls for a dedicated "NRB Desk" at the Bida to fast-track investments and partnerships from non-resident Bangladeshis (NRB). Structured fellowships, mentoring programmes, and capital facilitation schemes would further encourage diaspora participation.
IMPLEMENT TASKFORCE ROADMAP
A June 2025 Semiconductor Taskforce had already charted a roadmap focused on skills, policy reforms, and international linkages. But execution remains a challenge.
The BSIA is now urging the Bida to take charge of implementation by forming a joint committee.
Early wins, they suggest, could include launching a dedicated semiconductor fund, securing 10 to 12-year tax holidays, and allocating space in high-tech parks for chip design clusters. Delivering such quick results, they argue, would build credibility with investors.
One of the starkest challenges Bangladesh faces is competitiveness. Neighbouring countries already offer attractive incentive packages to chipmakers. Unless Bangladesh can match them, local firms will struggle to compete.
The industry wants the Bida to facilitate talks with the Ministry of Finance and the National Board of Revenue to secure a range of measures: a 25 percent export incentive on verified foreign service income, progressive tax holidays, duty-free imports of tools and testing equipment, and clear rules for leased equipment to avoid customs hurdles.
Such fiscal support, they insist, would not only boost competitiveness but also send a strong signal to international clients.
NEW LAW FOR STABILITY
Perhaps the most significant proposal is the call for a National Semiconductor Act. The BSIA argues that investors need more than promises. They need legal certainty.
The proposed law would guarantee tax holidays and duty exemptions, streamline customs clearance, create financing schemes for startups, and strengthen intellectual property protection. Industry insiders believe such an act could be the anchor of Bangladesh's long-term semiconductor strategy.
The BSIA has asked that it be recognised as the government's official industry partner, with a say in distributing incentives and overseeing implementation.
The association said a successful semiconductor sector could create 10,000 skilled jobs, diversify exports beyond garments and agriculture, and strengthen sovereignty in critical technologies ranging from defence to healthcare.
But the window is limited. Other Asian nations are already ahead. Vietnam has secured billion-dollar chip assembly investments. India has rolled out a $10 billion incentive package. Malaysia continues to attract design and testing contracts.
A delegation led by BSIA President MA Jabbar handed the proposal to Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun.
Chowdhury said he will place special emphasis on engaging relevant ministries and departments to ensure timely implementation of the action items in the recommendations, said the association in a statement.
At the same time, he assured the BSIA leaders that these proposals would be given serious consideration.
He also mentioned that a full-time officer has already been assigned at the Bida to oversee the semiconductor sector and urged the BSIA leaders to maintain regular communication with him for smooth implementation of these initiatives.
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