Bangladesh already possesses some of the components needed to participate in chip manufacturing.

A team at the Bangladesh University of Engineering and Technology (BUET) has designed a 32-bit computer processor using entirely open-source technologies.

After more than a decade of steady growth, Bangladesh’s semiconductor sector is preparing for what industry leaders describe as its biggest push yet, backed by coordinated government policy, tax incentives and renewed efforts to expand globally.

The Bangladesh government has proposed sweeping tax concessions for the semiconductor industry, including reducing import duties on key raw materials to 1 percent until mid-2031, as part of its fiscal year 2026-27 budget.

Ulkasemi VLSI Training Institute (UVTI), an initiative by Ulkasemi, a semiconductor design company, was inaugurated in Niketan, Dhaka, on November 11.

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.

The partnership aims to promote technology exchange, research collaboration, and workforce development

While building fab facilities and manufacturing chips may require a huge sum of investment and time, there is another field that launched Bangladesh into the stage of the semiconductor industry - the VLSI (Very Large-Scale Integration), a process for creating complex ICs by designing semiconductor chips.

The semiconductor manufacturing sector is well-known for its complexity, high stakes and intense corporate competition. Demand has always been driven by innovation, with every new technology changing the game.

Bangladesh would be able to earn $10 billion from semiconductor manufacturing by 2041 if proper policy support is ensured, according to Zunaid Ahmed Palak, state minister for telecom and ICT.

Bangladesh's endeavour to become a knowledge-based economy has already gained significant momentum.

Bangladesh can position itself to be an active player, particularly in semiconductor packaging.

PM’s Adviser Salman F Rahman says