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The Financial Express

Semiconductor industry: A new possibility for Bangladesh

| Updated: October 20, 2022 18:22:39


Semiconductor industry: A new possibility for Bangladesh

The hassle of manufacturing long-wired and tubed machines was put to an end by an interesting material named semiconductor chips. 

Having the conductance between conductors and insulators, semiconductors gave us the control to manage the electricity flow in the pieces of machinery. The huge technological development in the last two decades is due to the fabrication of integrated circuits and transistors. The semiconductor is the life of these devices.

The usability and portability of electronic devices played a major role in grabbing customers. ICs replace wires and tubes. On the one hand, we succeeded in making lightweight, slim, portable devices. On the other hand, we were able to make cheaper, faster, and more efficient devices. All these are possible due to the existence of semiconductors.

So we can say that manufacturing semiconductor devices means making the hearts of modern electronics. What scopes does Bangladesh have in this field?

In the past, there was no significant hardware manufacturing in Bangladesh. But the scenario is changing day by day. Walton took the first step by establishing the country’s first hardware manufacturing plant, followed by Samsung’s assembly plant. The development so far gives us hope to strive further.

The semiconductor industry in Bangladesh is still in the primary stage. Right now, only 3 semiconductor companies are actively providing mainstream services. But Bangladesh has a bright future in this industry. Why is that?

Making semiconductor chips has various levels of manufacturing which requires huge labour. According to Trading Economics, the average monthly fee for labour in Bangladesh is lower than in Myanmar, Cambodia, and China. The average monthly fees in these countries are $135, $170, and $518, respectively. In Bangladesh, it is only $101. The low labour cost keeps us in an advantageous position in taking a rising industry forward.

The huge population of Bangladesh may, most of the time, appear to be a reason for our lagging behind. However, right now, the country has the advantage of a demographic dividend. 

Coupled with these facts, there is more good news for the country’s potential industry as the local electronics giant Walton has decided to invest in the semiconductor sector soon. It has already secured a location in the Bangabandhu Hi-Tech Park. ACI, one of the leading industrial groups in the country, is going to invest in the semiconductor sector too. Neural Semiconductor Limited, Ulkasemi are some other names in Bangladesh’s picture.

Looking at the semiconductor industries' emergence and the worldwide situation will clarify things. The vast business of semiconductors started around the 1960s’. According to the latest study, the worldwide profit from semiconductor sales reached $481 billion in 2018. The current market is said to be above $600 billion.

The worldwide sales of electronic industries are increasing like wildfire. The more the sales of electronics, the higher the sales of semiconductors. Transistors, ICs, and diodes are the driving forces behind the sales of electronics.

In 2011, the annual electronics sales were $216 billion, reaching a staggering $2.9 trillion in 2020. If the whole tech industry is concerned, the number stands at $5 trillion and the e-commerce industry grosses $29 trillion.

As of now, RMG is the main pillar of Bangladesh’s economy. The semiconductor industry can be the game changer in Bangladesh’s economic transition and reduce the dependency on RMG only. 

The government has already laid the framework for a technology-dependent economy with a view to creating Digital Bangladesh. Currently, local semiconductor chip designing fetches around $5 million annually. If the industry achieves further ground, it will contribute to GDP significantly while creating employment opportunities.

To thrive in the competitive stage of the global economy, having a set of developed semiconductor industries can be a thing of tomorrow.

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