PM sees semiconductors as Bangladesh’s next major export after RMG

Highlights: 

• PM says semiconductors could become Bangladesh's next major export after RMG
• Government to offer tax incentives and investment-friendly policies
• High-tech parks to be modernised; biotechnology park planned
• PM cites skills, funding and infrastructure gaps as key challenges

Prime Minister Tarique Rahman today (25 July) said Bangladesh's semiconductor industry could become the country's next major export sector after the ready-made garment (RMG) industry, as the government seeks to build a globally competitive ecosystem around chips, artificial intelligence (AI), biotechnology, electronics and robotics.

"We have demonstrated success in agriculture, the garment industry, remittances and digital services. Now, based on the talent, skills and entrepreneurial spirit of our young generation, I firmly believe that after the garment industry, the semiconductor industry can become another promising economic destination for Bangladesh," he said.

The prime minister was speaking at the inauguration of the two-day National Semiconductor Symposium and Biotechnology, Electronics, AI & Robotics (BEAR) Summit 2026 at the Novo Theatre in Dhaka.

He said the global semiconductor market is expected to approach $1 trillion by 2030, creating a major opportunity for Bangladesh to enter the global technology supply chain.

"Entering this market presents an enormous opportunity for Bangladesh," he said, expressing hope that the country would set an ambitious export target for the semiconductor industry by 2030.

The prime minister said the government has already begun taking steps to create a favourable ecosystem through investment-friendly policies, tax and duty incentives, bonded warehouse facilities and specialised infrastructure.

He said tax and duty facilities have been introduced for semiconductor manufacturing, while initiatives have also been taken to support semiconductor design services.

The government has also allocated Tk500 crore in startup grants in the current budget to support new entrepreneurs and technology-driven businesses, he said.

"To take this sector forward, we have taken several measures," Tarique said, adding that the government was working to ensure that entrepreneurs receive the necessary policy support and financial assistance.

He said existing high-tech parks would be modernised and a dedicated biotechnology park was being planned to strengthen the country's technology ecosystem.

However, the prime minister stressed that the development of the semiconductor and deep-tech sectors cannot be achieved by any single ministry or institution.

"It is a collective national mission," he said, calling for coordinated efforts involving government agencies, universities, research institutions, industry, entrepreneurs, expatriate professionals and development partners.

Talent pool offers a strong foundation

Tarique highlighted the growing pool of Bangladeshi semiconductor professionals working around the world.

More than 3,000 Bangladeshi semiconductor professionals are currently working in major companies, universities and research institutions in the United States, Malaysia, South Korea, Japan, Singapore, Europe and other countries, he said.

He called for these globally experienced professionals to be connected with Bangladesh's development efforts.

The country has already started building capabilities in semiconductor design, verification, embedded systems, power electronics and advanced manufacturing, while several local companies have begun entering international markets, he said.

The prime minister, however, acknowledged that the sector faces significant challenges, including a shortage of skilled manpower, limited laboratory facilities, financing constraints and intense global competition.

"We have limitations and we face international competition. But I have the determination to overcome these challenges," he said, assuring the industry of the government's support.

AI, biotech and robotics to drive future growth

Speaking at the event, Science and Technology Minister Fakir Mahbub Anam said AI, semiconductors, biotechnology, electronics and robotics would be among the key drivers of Bangladesh's future economic growth.

He called for increased domestic and foreign investment in these sectors, saying they were not merely areas of technological innovation but also critical to industrial development, education, healthcare and national competitiveness.

"The government's goal is not only to use technology but also to develop and innovate technology and transform Bangladesh into a knowledge-based economy," he said.

Government promises stronger support for innovators

Prime Minister's Adviser on Posts, Telecommunications, ICT and Science & Technology Rehan Asif Asad said Bangladesh now stands at the threshold of the AI- and semiconductor-driven Fourth Industrial Revolution.

He urged young Bangladeshi innovators to think beyond national borders and take their innovations to the global market.

"The government has already implemented a 100% VAT exemption for the semiconductor industry and is pursuing further tax relief measures," he said.

'Silicon River' vision and global debut

Professor Muhammad Mustafa Hussain of Purdue University, USA, who presented the keynote at the summit, unveiled a strategic vision to transform Bangladesh into a technology powerhouse, describing the initiative as "Silicon River Bangladesh" – drawing inspiration from California's Silicon Valley.

He said Bangladesh's young population could become the country's biggest competitive advantage if the right talent is developed in semiconductors, biotechnology, electronics, AI and robotics.

The summit also brought together 93 "BEAR patrons" from 36 universities and a group of young innovators described by Prof Mustafa Hussain as "the faces of tomorrow's Bangladesh".

He said Bangladesh's large youth population, with decades of working life ahead, could develop globally sought-after solutions if it receives the right direction, research support and opportunities.

The two-day event brought together policymakers, global semiconductor industry executives, researchers, entrepreneurs, university representatives, investors, startup founders and Bangladeshi experts working abroad.

The event was jointly organised by the Bangladesh Semiconductor Industry Association (BSIA), the Ministry of Science and Technology and Silicon River Bangladesh.

BSIA President MA Jabbar, in his welcome address, called for sustained policy support and strategic international partnerships to position Bangladesh competitively in the global innovation landscape.

The summit also featured an exhibition showcasing emerging technologies, products and innovations from semiconductor, electronics, AI, robotics and biotechnology companies and startups.

The PM visited the exhibition stalls after the inauguration, spoke with participating companies and innovators, and encouraged them to pursue innovation and develop products for international markets.