BSIA Adviser Dr Khalid Azim says fabless chip developers are the ‘fashion designers’ of the semiconductor industry. With the right strategy, investment, and collaboration, Bangladesh has the potential to emerge as a key player in the global semiconductor industry
As the global semiconductor market surpasses previous projections, Bangladesh must focus on creating semiconductor job providers rather than merely targeting entry-level chip design services, said Dr Khalid Azim, a Bangladeshi-origin semiconductor industry veteran based in Silicon Valley.
“Fabless semiconductor companies that develop chip products are like the fashion design houses of the industry,” Dr Azim said in a recent interview with The Business Standard during his visit to Dhaka. These companies drive innovation, generate demand and create high-paying jobs across multiple disciplines.
A graduate of BUET with a PhD in Electrical Engineering and Computer Science from the University of California, Berkeley, Dr Azim has been instrumental in developing semiconductor chips in Silicon Valley since the late 1980s. He began his career at AT&T Bell Labs, later leading the development of the SiRFstarIII GPS chip, which dominated 40% of the global GPS device market within three years of its 2003 release. The success led to a lucrative IPO in 2004, benefiting investors, founders and employees.
To contribute to Bangladesh’s development, Dr Azim joined the Bangladesh Semiconductor Industry Association (BSIA) as an adviser last year. He also served on the Silicon Valley Panel of Experts that contributed to a report on developing Bangladesh’s semiconductor industry, initiated by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI).
Bangladesh’s semiconductor aspirations
BSIA, led by top apparel exporter MA Jabbar since December, is pushing for a robust semiconductor ecosystem, targeting $1 billion in exports and a workforce of 10,000 chip engineers by 2030. The association is collaborating with international counterparts, participating in global semiconductor events and working with academia and the government to align efforts.
Currently, around 30 universities in Bangladesh offer semiconductor design programs, training students in Very Large Scale Integration (VLSI) design. However, Dr Azim believes that Bangladesh must make bigger investments and launch more ambitious programmes to tap into this trillion-dollar industry.
“The global chip market is projected to reach $1 trillion by 2030. With 1% of global GDP, Bangladesh should have a $10 billion semiconductor industry. The real target, however, should be at least $25 billion,” he emphasised.
By comparison, Malaysia, with a population of 35 million, expects semiconductor revenues of $18 billion by 2025.
The global semiconductor race
Citing a presentation by Taiwan Semiconductor Manufacturing Company (TSMC) at a premiere semiconductor conference in San Francisco last year, Dr Azim noted that a $1 trillion global chip industry would drive $3 trillion in semiconductor-based products, leading to $12 trillion in IT systems and a global GDP of $145 trillion.
Recognising semiconductors as a cornerstone of modern economies, countries worldwide are aggressively investing in their semiconductor sectors. China, for instance, is allocating $100 billion in state-funded programmes, the US has committed $52 billion through the CHIPS Act, India is investing $10 billion in state-backed semiconductor initiatives, while Vietnam and Malaysia generated $20 billion and $17 billion in semiconductor revenues, respectively, in 2022.
Bangladesh’s 13 BSIA member companies, in contrast, have a combined revenue of only $8 million. Dr Azim sees a massive opportunity for rapid industry growth.
Strategic investments and policy support
“Any government funding must be carefully directed to yield tangible results. Success requires focused, dedicated efforts, passion, and strong collaboration between government, industry, academia, and non-resident Bangladeshi [NRB] engineers,” he asserted.
Bangladesh produces a large pool of educated graduates every year, but they need proper training and opportunities. Attracting established semiconductor companies and fostering startups is crucial. Large Bangladeshi conglomerates also have the chance to make a significant impact. The government can play an immediate role by subsidising expensive chip development tools and chip fabrication costs, as other nations have done.
In February, BSIA submitted its 2030 roadmap to the interim government’s Semiconductor Taskforce, proposing policies to attract at least one global chipmaker. However, Dr Azim insists that an alternative strategy must be developed simultaneously — a thriving semiconductor and systems startup ecosystem.
Universities, government agencies, industry leaders, investors, and NRBs must collaborate to build this ecosystem. Successful models exist in the US, Canada, Europe, South Korea, and India. Even Bangladesh has seen successes in growing software and app-based companies.
Bangladesh’s expanding electronics sector, led by companies like Walton, presents a significant opportunity to develop semiconductor chips for the domestic market. Locally produced chips would shorten supply chains, reduce costs, build the ecosystem and create jobs while opening doors for exports and joint ventures with multinational corporations.
Fabless chip companies also stimulate demand in complementary fields such as testing, CAD tools, embedded systems, software, PCB board design, and system integration.
The role of NRBs and skilled engineers
Dr Azim, still based in Silicon Valley, co-founded Recho AI Inc in Montreal — an AI chip startup incubated by TandemLaunch, which benefits from Canadian government tax breaks and subsidies covering up to 75% of engineers’ salaries.
Additional funding supports R&D collaborations with Canadian universities. Recho AI has pioneered a unique intelligent sensor technology that integrates AI directly into the sensor, upending existing edge AI solutions.
“Startups shouldn’t compete directly with industry giants. Instead, they must find niche markets that big companies overlook,” he advised.
Dr Azim is eager to collaborate with partners in Bangladesh for chip and systems development. “Success stories from such partnerships will inspire further investments by local companies and MNCs. However, this requires a well-trained workforce. I’m encouraged by the enthusiasm among EE/CS faculty members at several universities I had the opportunity to meet. Building actual silicon test chips in universities is critical for equipping students with the skills semiconductor companies seek. Support from local industry and government would be invaluable.”
Scaling up Bangladesh’s semiconductor workforce
Approximately 1,000 chip design engineers currently work in Bangladesh, majority of them with only a few years of industry experience. This lack of experienced professionals makes it difficult to attract foreign chip companies for outsourced projects.
Beyond training fresh graduates to meet the 10,000-engineer goal by 2030, it is vital to bring in highly experienced semiconductor engineers to mentor and strengthen local teams. Engaging skilled NRB engineers can play a crucial role in this effort.
By 2030, the global semiconductor industry will face a shortage of nearly 1 million engineers. Saudi Arabia alone anticipates a need for 5,000 engineers soon in its quest to grow its own semiconductor industry, offering lucrative packages and residency to attract talent.
Bangladesh’s apparel industry thrived due to government incentives and strategic support. A similar approach is necessary for semiconductors. BSIA, formed last year, has proposed training 8,400 chip designers, 1,000 testing engineers, and 600 chip packaging engineers by 2030.
It has also requested a 25% rebate on export earnings for BSIA members until 2030 as part of a $637 million incentive plan, which could generate $2.55 billion in export revenue within five years.
With the right strategy, investment, and collaboration, Bangladesh has the potential to emerge as a key player in the global semiconductor industry.
