Bangladesh is accelerating its efforts to establish a foothold in the global semiconductor industry through new tax incentives, policy support and international collaborations aimed at expanding chip design and engineering capabilities.
The government has introduced a package of fiscal incentives in the FY2026-27 budget, including exemptions from regulatory duty, supplementary duty, VAT and advance tax on raw materials used in semiconductor design, testing and packaging until June 2031.
Industry leaders say the incentives, combined with growing engineering talent and international partnerships, are positioning Bangladesh as an emerging destination for semiconductor design services. The Bangladesh Semiconductor Industry Association (BSIA) expects the momentum to gain further pace during the National Semiconductor Symposium & BEAR Summit 2026, where strategic roadmaps for talent development, ecosystem growth and global partnerships will be unveiled.
Bangladesh’s semiconductor ecosystem now employs around 1,200 engineers across companies such as Ulkasemi, Neural Semiconductor, iTest Bangladesh and sBIT Inc., generating an estimated $12 million to $15 million in annual revenue. Rather than advanced chip manufacturing, the country’s immediate focus is on chip design, testing and assembly, leveraging its growing pool of skilled engineers to serve international markets.
Industry leaders believe Bangladesh’s neutral geopolitical position and expanding technical capabilities could help the country capture a larger share of the rapidly growing global semiconductor market in the coming years.
