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BIDA OSS

Semiconductor

Emerging Ecosystem at the Heart of Asia’s High-Tech Corridor

Semiconductor
$1

Trillion global market by 2033

~6%

global CAGR projected over the next decade

$8M+

in exports (2024)

20k+

annual graduates in CSE and EEE

OVERVIEW

Bangladesh is taking strategic steps to build a globally integrated semiconductor ecosystem, leveraging its young engineering talent and competitive labor costs. Driven by rapid advances in technology, smart device proliferation, and the growing adoption of IoT applications, the global semiconductor industry is entering a new phase of exponential growth. With increasing focus on STEM education and skill development, Bangladesh is emerging as a cost-effective destination for IC design, OSAT (Outsourced Semiconductor Assembly and Testing), and advanced packaging.

To move up the value chain, Bangladesh is actively encouraging FDI, international joint ventures, and targeted investments in semiconductor education and R&D. The sector currently generates USD 8 million in annual export earnings, with an ambitious target of USD 1 billion by 2030. Universities across the country are expanding VLSI (Very Large-Scale Integration) and semiconductor design programs to build future-ready talent. With major semiconductor supply chains concentrated in neighboring economies such as China, India, Taiwan, South Korea, and across the ASEAN region, Bangladesh is strategically positioned to integrate into the regional value chain—offering investors proximity, cost-efficiency, and a fast-developing innovation ecosystem.

Growth Drivers

Cost Advantage

Average monthly labor cost is USD 101 – significantly lower than USD 135–518 in peer countries.

Policy Action

A national taskforce of government, industry, and academia is identifying near-term growth levers, addressing gaps, and shaping infrastructure and incentive frameworks.

Talent Pipeline

Bangladesh has over 700 chip designers and produces 20,000+ graduates annually in computer engineering and EEE. Universities are increasingly investing in microelectronics, embedded systems, and VLSI-focused R&D.

Export Target

The Bangladesh Semiconductor Industry Association targets USD 1 billion in semiconductor exports by 2030, up from USD 8 million currently.

KEY PLAYERS

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KEY PLAYERS

POLICIES & INCENTIVES
  • 10% cash incentive on exports of IT enabled services.
RELEVANT BODIES
  • Ministry of Posts, Telecommunications and Information Technology
  • Bangladesh Hi-Tech Park Authority (BHTPA)
  • National Semiconductor Taskforce
  • Bangladesh Semiconductor Industry Association (BSIA)

RESOURCES

SEMICONDUCTOR INDUSTRY

JANUARY- MARCH | 2025