A Bold Leap into the Chip Ecosystem
Bangladesh is launching a game-changing initiative to position itself as a serious player in the global chip market. At the heart of this move is the “Silicon River” roadshow organised by the Bangladesh Semiconductor Industry Association (BSIA), which began in Penang, Malaysia on 11 November 2025.
The aim is clear: to establish Bangladesh as a cost-competitive, high-skill hub in the global value chain for semiconductor design, AI-driven chip engineering, and outsourced testing services. (The Business Standard)
This marks one of Bangladesh’s most coordinated efforts yet to enter the global semiconductor ecosystem.
Why Malaysia and Why Now?
Malaysia is widely regarded as one of Asia’s leading centres for semiconductor packaging and testing. It hosts major players like ASE Technology Holding, Infineon Technologies and Silterra Malaysia in its mature manufacturing and R&D ecosystem.
By choosing Penang for its roadshow, Bangladesh taps into this established ecosystem and builds bridges between its emerging design talent and Malaysia’s advanced infrastructure.
BSIA noted that Bangladesh brings design talent, cost advantage and an innovation mindset. Malaysia brings decades of experience in packaging and testing. The “Silicon River” initiative aims to combine these strengths. (The Business Standard)
Bangladesh’s Emerging Semiconductor Ecosystem
Over the past five years Bangladesh has seen more than a dozen chip-design startups emerging. Many are founded by engineers returning from the US, Europe and Asia.
Universities such as Bangladesh University of Engineering and Technology (BUET), Chittagong University of Engineering & Technology (CUET), Khulna University of Engineering & Technology (KUET), Islamic University of Technology (IUT) and BRAC University have set up Very-Large-Scale Integration (VLSI) labs and research groups.
BSIA has signed cooperation agreements with international associations and universities in the US, Taiwan, Malaysia and Europe. (The Business Standard)
This ecosystem supports the broader focus on building Bangladesh’s semiconductor hub credentials.
Strategic Pillars of the “Silicon River” Vision
Design First
Bangladesh is focusing on becoming a design-centric nation. Instead of attempting full manufacturing immediately, the strategy is to move into chip design, analog, RF and photonics, where talent can excel. For example, local firms such as ULAKSEMI and Neural Semiconductor specialise in analog, RF and photonics design.
Testing and Outsourced Services
Another pillar is testing and outsourced services. Bangladesh aims to become an attractive centre for outsourced test and packaging (OSAT) services, tapping into global value chains. The presence of iTest Bangladesh offering testing and reliability services is one sign of this shift.
Talent and Academia Linkage
The link between academia and industry is central. Bangladesh aims to leverage its young engineering pool, its universities, and diaspora engineers to deliver design and innovation services. A professor from Purdue University noted the roadshow signals a new era of connecting academia, industry and the diaspora for Bangladesh.
Economic and Global Context
The global semiconductor market is highly competitive, with supply-chain tensions, booming demand for AI and a shift to localisation of chip production. Bangladesh’s attempt to break into this value chain is timely.
Malaysia, for instance, exported US $9.43 billion in semiconductor products in 2021. (Facebook)
Bangladesh also faces pressure to diversify its economy beyond textiles and ready-made garments. The foreign-exchange reserves recently dropped to US $26.43 billion. (The Daily Star)
In this context the “Bangladesh semiconductor hub” aspiration is more than a slogan. It is a strategic attempt to upgrade technology, exports and workforce value.
What the Roadshow Means for Stakeholders
For foreign investors: It signals that Bangladesh is open for semiconductor partnerships. With BSIA organising a three-day international roadshow, the platform offers B2B and B2G partnerships, training frameworks, IP-sharing and joint ventures. (The Business Standard)
For local startups and universities: It raises visibility and credibility. Exposure to Malaysian and other international players brings networks and potential collaboration.
For the economy: If successful, Bangladesh could position itself as a Southeast Asian design and testing hub, capture higher value in the chain and reduce reliance on low-end manufacturing.
For the workforce: Engineers, scientists and technologists gain new career pathways in chip design, AI and advanced electronics services.
Challenges Ahead on the Journey to a Bangladesh Semiconductor Hub
While the vision is ambitious, several challenges must be addressed:
Quality of infrastructure and energy reliability remain critical factors in semiconductor ecosystems. Ensuring reliable power, cooling and high-speed connectivity will be essential.
Securing IP protection, robust regulatory frameworks and industry-academic linkages will matter. Building trust with global partners requires transparency and adherence to standards.
Investment in high-end skills and research is needed. Design, photonics, RF and AI-chip engineering are highly specialised disciplines with steep learning curves.
Creating a sustainable local ecosystem will take time. Manufacturing, packaging and testing ecosystems around design need mature supply chains, logistics, workforce and partnerships.
Despite these challenges, the momentum is clear and Bangladesh has initiated the conversation at the international level.
Opportunities That the Vision Unlocks
- Global market access: By aligning with Malaysia’s semiconductor ecosystem, Bangladesh can tap into export-driven design and test services.
- Talent monetisation: Engineers from Bangladesh’s universities and diaspora might find global design assignments without relocating abroad.
- Higher value-added exports: Moving from low-end manufacturing to designing chips, providing testing services and licensing IP can raise export earnings.
- Tech ecosystem growth: The semiconductor vision can spin off into adjacent fields like AI, IoT, photonics and advanced materials, boosting the overall tech sector in Bangladesh.
- Regional advantage: Bangladesh’s lower labour costs combined with a design-skill focus could offer a competitive edge versus mature but higher-cost markets.
Strategic Steps for Implementation
To move from vision to reality the following steps are essential:
• Establish dedicated semiconductor zones with infrastructure tailored for chip design and test operations.
• Foster public-private partnerships that link universities, startups and global investors.
• Incentivise international OSAT players to collaborate or co-locate operations in Bangladesh.
• Build training and certification programmes in cutting-edge areas like analog design, RF, photonics and AI chip engineering.
• Promote the “Bangladesh semiconductor hub” brand internationally through trade missions, roadshows and partnerships.
• Implement strong IP and industry-friendly policies to attract global confidence and engagement.
What to Watch in the Next 12-24 Months
- Announcements of joint ventures or memorandums between Bangladeshi and Malaysian (or other global) semiconductor firms.
• Investments in research-and-development centres in Bangladesh focused on chip design and automation.
• Growth in the number of chip-design startups in Bangladesh, especially those targeting analog, RF and photonics.
• Entry of OSAT or test-services firms into Bangladesh, or partnerships with local firms like iTest Bangladesh.
• Policy updates from the government of Bangladesh supporting semiconductor investment, fiscal incentives or infrastructure allocation.
Why This Matters for Bangladesh’s Future
This “Silicon River” vision could be transformative. By focusing on design, services and high-skill work, Bangladesh stands to leapfrog into the global technology-value chain. The term “Bangladesh semiconductor hub” is no longer speculative. It is becoming a strategic ambition backed by concrete outreach.
If realised, the benefits will include higher-paid jobs for engineers, diversification of exports, stronger tech ecosystem, and a more resilient economy. For a country long known for textiles, moving into semiconductors marks a shift into advanced-technology territory.
Final Reflection on the Journey
The road from a nascent ecosystem to becoming a full-fledged semiconductor hub is long. Yet Bangladesh has made a solid start via the roadshow in Malaysia and the BSIA’s efforts. The key will be sustained momentum, real partnerships, infrastructure readiness and a credible track record.
By staying focused on its strength in design talent and cost competitiveness, and aligning with global players via the “Silicon River” branding, Bangladesh has a real chance to carve out a niche in the semiconductor world. The next chapter is now unfolding.
