Industry stalled by lack of labs, funding, and strategic govt support
As global demand for semiconductors surges, Bangladesh has a unique chance to develop a US$10 billion industry by 2033. However, experts warn that persistent structural bottlenecks in policy, infrastructure, and skilled manpower could derail this opportunity.
Driven largely by artificial intelligence, the global semiconductor market is projected to reach $1 trillion by 2030. Yet Bangladesh, despite growing entrepreneurial interest, currently earns only about $50 million a year from semiconductor exports.
Local firms face formidable hurdles, including the absence of a coherent government policy, a shortage of skilled manpower, weak infrastructure, and limited research and development support.
The semiconductor industry has three core segments: design, fabrication, and testing and packaging. Bangladeshi firms are currently active mainly in the design phase. Ulkasemi, for instance, has been designing semiconductors for 18 years, serving global clients such as Apple, GlobalFoundries, and Rapid Silicon.
“Finding skilled engineers is a major bottleneck,” said Mohammad Enayetur Rahman, CEO and president of Ulkasemi. “Our universities produce graduates, but not ‘tape-out ready’ engineers.” To address this gap, Ulkasemi established the Ulkasemi VLSI Training Institute, providing specialised training to graduates.
Siliconova, another Bangladeshi semiconductor design company, faces similar challenges. Sirajul Alam Khan, chief technology officer of Siliconova, noted that most graduates have theoretical knowledge but lack hands-on experience due to the absence of well-equipped university labs.
“Companies have to invest heavily in post-joining training. Some trainees still fail to qualify, resulting in financial losses,” he explained.
Semiconductor design also requires expensive, annually multiple licensed software, often exceeding $200,000 each software. “Universities should provide initial exposure,” Sirajul said, “but since they don’t, the cost falls on private companies.”
Several Bangladeshi universities offer programmes in Electrical & Electronic Engineering (EEE), Applied Physics, and Robotics. Dr Mainul Hossain, associate professor at Dhaka University and former principal engineer at GlobalFoundries, highlighted the structural gaps: outdated curricula, lack of practical labs, and insufficient funding for research.
“Public universities were established, but not labs. Even the EEE Department of DU, with its decades-old equipment, struggles due to lack of maintenance and funding,” Mainul said.
Visiting the lab, it was found that there is a 54-year-old machine worth Tk2 crore. The machine is still workable. The lab technician said, “Developed countries sent this machine to the museum, and the parts of this machine are not available. If we need parts of this machine, we make them from local hardware shops.”
Recent government funding, such as the Tk60 crore allocated by the ICT Division to BUET for semiconductor-related research, is a start.
However, without consistent investment and modernisation, these efforts will have limited impact.
Private initiatives are stepping in to fill the gap. Professor Muhammad Mustafa Hussain of Purdue University, USA, established CREST — a national hub for advanced semiconductor research in Bangladesh.
Supported by Synopsys, GlobalFoundries, and Neural Semiconductor, CREST currently engages eight graduate and two undergraduate students in semiconductor research. Mustafa also plans to train 5,000 Bangladeshi graduates in Malaysia at his own cost, aiming to build skilled manpower for a domestic semiconductor industry.
Bangladeshi entrepreneurs emphasise that countries like Malaysia and India have successfully positioned themselves as major semiconductor exporters through strong government policies, well-equipped labs, and continuous research funding. Malaysia exports around $140 billion in semiconductors annually, while Bangladesh remains heavily dependent on the ready-made garment sector, which earns $38.48 billion per year.
“Talent is not our main issue; it is institutional velocity,” said Ulkasemi CEO Enayetur. “In Malaysia, the prime minister meets semiconductor leaders monthly. In India, the ‘Semiconductor Mission’ is a cabinet-level priority. In Bangladesh, policymakers still categorise semiconductors as IT outsourcing.”
He outlined critical steps for Bangladesh to scale from a $50 million design service sector to a $10 billion domestic industry by 2033.
Enayetur emphasised the need to establish a National Semiconductor Bureau, implement a single-window investment system, ensure policy stability, provide state-backed shared clean rooms, and subsidise EDA (Electronic Design Automation) tools in at least five major universities by 2027.
Experts warn that without clear government policy, modern university lab facilities, updated curricula, and dedicated research funding, Bangladesh risks missing its opportunity in the rapidly growing global semiconductor market.
“If we act now with targeted fiscal incentives and a dedicated Semiconductor Fund, Bangladesh can claim a meaningful share of the global semiconductor revolution. The window is open, but in this industry, windows close in nanoseconds,” experts caution.
