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Semiconductor industry: A new possibility for Bangladesh

leonblack08

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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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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.


Someone with far too much imagination
 
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To clarify, before people go crazy about semi-conductors being out of Bangladesh's technological reach -

These companies are not fabricators. They are designing chips. It is a good place to start.

Profiles of some of the companies -

Ulkasemi


Neural Semiconductor

PrimeSilicon

Someone with far too much imagination

I don't open garbage threads based on personal opinions and imaginations like you do.

This is based on fact. If you don't have anything to contribute to the topic, you can refrain from posting nonsense.

 
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With some support, a slice of $600b semiconductor market can be ours




After graduating from BUET in 1977, Mohammed Enayetur Rahman went to Oregon State University in the United States of America to study Electrical Engineering and Computer Science.

He then joined AMD, the famous American multinational semiconductor company as a semiconductor chip designer. After leaving AMD, Enayetur returned to Bangladesh and started Ulkasemi, a semiconductor designing company, in Dhaka with only four engineers in 2008.

At the time the market for semiconductors was around $248.5 billion according to Statista.


Enayetur could easily be described as the first mover: the pioneer in a market that has since grown to a staggering $600 billion in the decade-and-a-half since Enayetur started.

The engineer could also be described as highly intuitive. The semiconductor industry is now considered the most promising industry of the 21st century.


A semiconductor, also known as microchip, is used in all electronic devices from computers, smartphones, washing machines, electric tea kettle to automobiles and warplane missile systems and has become part of modern life at all levels.

In the future, with the rise of technological innovation, it would be needed to manufacture almost all devices for human use.


While the market has so far been catered to by newcomers – Ulkasemi, Neural Semiconductor, Prime Silicon and Toton Electronics – in Bangladesh, two new big players in ACI and Walton are also set to enter the market which is expected to hit the mammoth trillion-dollar mark by 2030.


According to McKinsey, a global consultancy firm, the global semiconductor market reached $600 billion in 2021, with growth of more than 20%.

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Despite the bounties the industry has to offer, the budget for the fiscal 2021-22 made no mention of the semiconductor industry, nor were any policy support announced.


Enayetur Rahman said, "In the beginning, it was very hard to make people understand that Bangladesh could produce chips. But now the industry is growing and it needs special attention."

Enayetur, whose company now employs 300 engineers and wants to hire 500 by 2024, urged the government to provide special incentives to the sector like the neighbouring India does.

Dr Farseem Mannan Mohammedy, professor of electrical and electronic engineering at Bangladesh University of Engineering Technology (Buet), told The Business Standard, "Bangladesh earns about $5 million annually through designing semiconductor chips. But neighbouring India is earning $60 billion from this sector."

India's envious standing is not by chance. Apart from the country's investment into setting up IT-based universities, the Indian government also announced a $1,000 crore fund to strengthen the semiconductor industry in December last year.

The industry has the potential to leave the current highest foreign currency earner garments industry in the dust.

"In Bangladesh, less than one lakh people in the semiconductor sector would be able to earn more than what 40 lakh people do in the RMG sector," Dr Farseem said.

"Intel employs 500 people from Bangladesh. This is brain drain. If we could establish an industry here, then those people could return. But this technology-based industry can never be fully developed without the special attention of the government. Because, this industry needs a lot of investment," he added.

According to government officials, initiatives are being undertaken.

Bikarna Kumar Ghosh, managing director of the Bangladesh Hi-Tech Park Authority, said, "The government has set up 10-12 IT villages, silicon city, electronic city, IT incubators and ICT parks in the country, including the Bangabandhu High-Tech Park and the Jashore Software Technology Park. These parks are providing plots on easy terms with tax holiday facilities to the investors.

"Recently, Ulkasemi has taken land in Bangabandhu Hi-Tech Park. We are ready to help them."


The rise of the 'conductors'


Didar Islam, who worked in the Silicon Valley, USA in the 1980s for more than a decade, was the first person to invest in the semiconductor sector in Bangladesh some 15 years back with his company Power IC. Their initial plan was to build a fabrication facility.

However, Didar's project faced various obstacles and he later started another company Solaric, which is now working on solar power in the country.

Enayetur, on the other hand, enjoyed much more success with his Ulkasemi.

It started with its headquarter based in Silicon Valley, USA. The company has been working on circuit design and layout since 2008. It has been involved in chip design and verification work since 2012.

Since its inception, it has opened two more offices in Toronto, Canada and in Bangalore, India to meet increasing work orders.

In 2021, Ulkasemi became the design centre alliance partner of TSMC, one of the leading semiconductor companies in the world. Only 20 companies in the world are affiliated with the design centre alliance of TMSC.

Ulkasemi has also announced a $25 million investment for semiconductor design service in Bangabandhu Hi-Tech Park.


Meanwhile, Neural Semiconductor Limited is a sister concern of DBL Group which is one of the leading RMG companies in the country.

Neural Semiconductor began its journey in 2017. It initially hired 20 engineers, but now has more than 100.

Officials of the company said that the number would be doubled within this year.

Shakhawat Hossain, chief operating officer of Neural Semiconductor, said, "We are currently working on the analogue design, digital design, digital verification, physical and testing design. The company has been working for various companies in the United States, Japan and Malaysia.

"In the initial stage, it was a big challenge to attract engineers to this sector. But now the situation has changed. However, there is still a shortage of high-value commercial software, electronic design automation tools and experts."

Mohammed Jabbar, managing director of DBL Group, said, "The government needs to take special initiatives to develop the semiconductor sector. Our universities need state-of-the-art laboratories along with a modern curriculum."

Walton and ACI are coming

The country's electronics giant Walton started manufacturing computers and laptops in 2018. The company is also producing gaming computers. It started its journey producing mobile phones and home appliances.

Now the company is going to invest in the semiconductor sector soon. It has already secured a location in the Bangabandhu Hi-Tech Park, an official of Walton said.

However, as the company is listed on the stock exchange, its officials did not want to give any official statement in this regard before a formal announcement.

Like Walton, there is also information that ACI, one of the leading industrial groups in the country, is going to invest in the semiconductor sector too. The investment will be under ACI Electronics, a subsidiary of ACI Group.

Source: https://www.tbsnews.net/economy/ind...-600b-semiconductor-market-can-be-ours-407530
 
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After graduating from BUET in 1977, Mohammed Enayetur Rahman went to Oregon State University in the United States of America to study Electrical Engineering and Computer Science.

He then joined AMD, the famous American multinational semiconductor company as a semiconductor chip designer. After leaving AMD, Enayetur returned to Bangladesh and started Ulkasemi, a semiconductor designing company, in Dhaka with only four engineers in 2008.

In 2021, Ulkasemi became the design centre alliance partner of TMSC, one of the leading semiconductor companies in the world. Only 20 companies in the world are affiliated with the design centre alliance of TMSC.

Ulkasemi has also announced a $25 million investment for semiconductor design service in Bangabandhu Hi-Tech Park.

Ulkasemi story has similarity with how Morris Chang started TSMC. But Morris Chang received tremendous support from Taiwan to make TSMC a global leader in the industry. Need to keep an eye on this company's development.

Hi tech parks are good start, but the Bangladesh government needs to provide more incentive to allow these semiconductor companies to flourish. Bangladeshi universities are pumping out a lot of capable engineers, many of whom end up leaving the country and work in Silicon Valley. We need to prevent this brain drain by opening up tech job opportunities locally.
 
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@BananaRepublicUK

I think you have this wrong as Walton has committed to going into the semiconductor industry.

Not only would this help them eventually break into one of the most important industries in the world but it would also lessen dependence for chips for their devices on outside companies.

It is no doubt a long journey that BD has started but everyone needs to start somewhere.
 
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@BananaRepublicUK

I think you have this wrong as Walton has committed to going into the semiconductor industry.

Not only would this help them eventually break into one of the most important industries in the world but it would also lessen dependence for chips for their devices on outside companies.

It is no doubt a long journey that BD has started but everyone needs to start somewhere.

ACI too.

Another large conglomerate DBL group already started, they own Neural Semiconductor.
 
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To clarify, before people go crazy about semi-conductors being out of Bangladesh's technological reach -

These companies are not fabricators. They are designing chips. It is a good place to start.

Profiles of some of the companies -

Ulkasemi


Neural Semiconductor

PrimeSilicon



I don't open garbage threads based on personal opinions and imaginations like you do.

This is based on fact. If you don't have anything to contribute to the topic, you can refrain from posting nonsense.

Interesting thread.
The poster you mentioned just couldn't take it anymore, he had to drop his " I am Bangladeshi origin " charade !

On topic great to hear Ulkasemi founder moved to Bangladesh to start the company.

Not many are willing to do that or can afford to do that.
 
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ACI too.

Another large conglomerate DBL group already started, they own Neural Semiconductor.



Walton is a now a fast growing billion dollar company and has those deep pockets to make the investments that are required in this industry.

I believe that BAL will fully support the incubation and development of this industry in BD.
 
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How are IT parks doing in Bangladesh? I heard lots is noise about the one in Kaliyakoir (?), north of Dhaka.
How many companies set up operations there, can anybody provide info or a link ?
 
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How are IT parks doing in Bangladesh? I heard lots is noise about the one in Kaliyakoir (?), north of Dhaka.
How many companies set up operations there, can anybody provide info or a link ?

There doesn't appear to be a consolidated info available. Govt. needs to do a better job at creating attractive investor presentation decks for potential foreign investors. The website for High tech park is anything but "high tech".

Here are some pieces of information about the parks -

Presentation courtesy of Bangladesh embassy in Netherlands:

Dutch investors planning to invest in Bangladesh’s high-tech park​


Bangabandhu Hi-Tech City likely to get $1.3b investment by 2025​


21 firms expected to invest Tk1,000cr, create 2,500 jobs in three hi-tech parks​

 
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There doesn't appear to be a consolidated info available. Govt. needs to do a better job at creating attractive investor presentation decks for potential foreign investors. The website for High tech park is anything but "high tech".

Here are some pieces of information about the parks -

Presentation courtesy of Bangladesh embassy in Netherlands:

Dutch investors planning to invest in Bangladesh’s high-tech park​


Bangabandhu Hi-Tech City likely to get $1.3b investment by 2025​


21 firms expected to invest Tk1,000cr, create 2,500 jobs in three hi-tech parks​

They are not selling it properly, or put a good team behind it. There are a lot of legwork like promoting the infrastructure needed. Who is in charge besides whatever Ministry is involved ?
There are potentials here, lots of it.
 
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Walton is a now a fast growing billion dollar company and has those deep pockets to make the investments that are required in this industry.

I believe that BAL will fully support the incubation and development of this industry in BD.

Are you saying Walton has enough money to set up semiconductor fab facility?
 
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To clarify, before people go crazy about semi-conductors being out of Bangladesh's technological reach -

These companies are not fabricators. They are designing chips. It is a good place to start.

Profiles of some of the companies -

Ulkasemi


Neural Semiconductor

PrimeSilicon



I don't open garbage threads based on personal opinions and imaginations like you do.

This is based on fact. If you don't have anything to contribute to the topic, you can refrain from posting nonsense.



He's a complete gadha. You do know that one of uks biggest electrical exports thats in every electrical mobile device in the world?

I am gonna ask you a set of questions?


1. Does uk company produce it domestically?


2. Does the British company collect royalties? And intellectual property fees?


3. Does uk the company just design and patent the stuff?
 
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They are not selling it properly, or put a good team behind it. There are a lot of legwork like promoting the infrastructure needed. Who is in charge besides whatever Ministry is involved ?
There are potentials here, lots of it.

Totally agree. A lot of potential. But they not fully utilizing it, as evident from sub-par investor materials available for foreign investors.

One positive effect I noticed is that a lot of local companies signed up for a place in these parks. This is good for propelling domestic companies and allowing them to grow. But local companies are limited by technology, so we need to have foreign presence as well. I would like to see more local-foreign JVs in place.

Are you saying Walton has enough money to set up semiconductor fab facility?

Nobody is talking about semiconductor fab here. Walton is likely also going to begin with designing.
 
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