Bangladesh Trails Behind in $1 Trillion Chip Industry

Bangladesh remains unprepared to tap into the rapidly growing global semiconductor market, projected to generate $1 trillion in revenue by 2033, due to lack of investment and planning.

Successive governments have promised development but failed to attract foreign investment or provide incentives crucial to the sector’s growth, unlike Asian peers such as Taiwan, China, India, and Vietnam. Last year, Bangladesh’s semiconductor earnings stood at just $8 million—driven largely by freelancers and private IT firms.

Experts stress that government support is essential for progress. “If Bangladesh wants to succeed, the government must provide continuous subsidies and duty-free incentives for several years,” said Professor A.S.M.A. Haseeb of BUET.

Semiconductors, the foundation of modern electronics, have become indispensable to everyday life, powering smartphones, laptops, and countless devices. Economic historian Christopher Miller has even predicted they will surpass oil in global importance.

Across Asia, massive investments are reshaping the industry. Taiwan leads with quintillion-scale production and a $9.3 billion subsidy programme, while Vietnam attracted 174 FDI projects worth $11.6 billion in 2024. India, Malaysia, and China have also announced multibillion-dollar investments to expand production.

In contrast, Bangladesh lacks a concrete roadmap despite producing 200,000 engineering graduates annually. Experts say the country could still enter the lower-cost packaging and testing market if it offers attractive incentives.

The Bangladesh Investment Development Authority (BIDA) has promised a proper plan, projecting $3 billion in semiconductor exports within five years, but concrete steps remain limited.

“Foreign investment is still focused on traditional sectors. To reduce dependency on garments, Bangladesh must prioritise semiconductors and create a separate investment model,” said Fazlee Shamim Ehsan, president of the Bangladesh Employers Federation.

BIDA officials insist efforts are underway to overcome hurdles and unlock the sector’s potential, but analysts warn that without swift action, Bangladesh risks missing out on one of the world’s fastest-growing industries.