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For decades, Bangladesh’s readymade garment (RMG) sector has been the primary driver of its economy. The apparel industry transformed an agrarian nation into one of the world’s leading apparel exporters. However, increasing wages, technological shifts, and intense international market competition are now pressuring the sector.
Bangladesh is now focusing on an industry that appears smaller than a shirt button but is exponentially more impactful and significant: ‘semiconductor’ or microchip manufacturing.
Building on the ‘Silicon River’ vision, a target has been set to export $1 billion (100 crore) from the semiconductor sector by 2030. This decision is incredibly timely. From Artificial Intelligence (AI), robotics, electric vehicles (EVs), telecommunications, and medical equipment to renewable energy, semiconductors are the fundamental building blocks of every modern industry.
Our Foundation and Potential
Simply dreaming won’t secure a place in the global chip market, but we have a strong starting point. According to the Bangladesh Investment Development Authority (BIDA), the country currently boasts over 700 experienced chip designers, and approximately 20,000 computer and electrical engineering graduates emerge annually. In this context, Digital Twin can create a tremendous opportunity for enhancing their skills. By utilizing it, our engineers can demonstrate their expertise on the world stage, from freelancing to industrial applications.
Before investing hundreds of millions of dollars in massive ‘wafer fabrication plants’ (Fabs), we must focus on Digital Twin. This is because all modern manufacturing plants require a Digital Twin. However, Digital Twin is neither taught here nor utilized in industry. Therefore, the semiconductor industry perceives an urgent need for its implementation. Thus, it’s possible to pivot millions of IT professionals through six-month training programs.
The income of a digital twin expert or engineer is highly attractive globally. In the United States, the average annual salary for this profession is approximately $139,000 to $158,000, and with experience, senior positions can reach $180,000 to $280,000. In India, on the other hand, the average annual income ranges from about 1.5 million to 2.5 million rupees.
Conversely, building a “fab” is extremely expensive, risky, and requires continuous high-tech infrastructure. Therefore, before constructing a fab, the wisest course of action for us would be to leverage the skills of young engineers.
Importance of Using ‘Digital Twin’ from the First Step
For industrialization in the semiconductor sector, Bangladesh must prioritize digital twins from research and development (R&D) to post-production and understanding consumer experience.
A digital twin is a living and evolving digital replica of a real product, machine, or entire factory. It connects the real and digital worlds, allowing for simulation, testing, and optimization on a digital model even before a chip or prototype is physically built.
Direct Benefits of Using Digital Twins
Reduced Risk and Cost: Testing on a digital model before physically building a chip saves millions in prototype production costs and risks.
Flawless Results on the First Try: Chip defects or performance can be predicted in advance, reducing the need for rework.
Increased Productivity: System downtime is reduced, maintenance is simplified, and maximum design reuse is ensured.
Scaling from Small to Large: New startups and researchers can begin work on a small scale through digital simulation and gradually expand to a larger scale.
Actionable Plan
To materialize this vision, work must be done on four specific pillars:
1. Skilled Human Resources and Digital Infrastructure:
Modernization of VLSI, Microelectronics, and EDA courses.
Establishment of joint ‘Digital Twin and EDA Simulation Labs’ for students and startups, enabling them to easily use expensive software.
2. Policy and Infrastructure Assurance:
Expeditiously implement the 1% duty on raw material imports and tax exemption until 2031, as announced in the budget, free from bureaucratic red tape. Simultaneously ensure uninterrupted electricity, high-speed data corridors, robust cybersecurity, and intellectual property (IP) protection.
3. Regional Realities and Niche Creation:
India is investing approximately $19 billion (1.6 lakh crore rupees) in its semiconductor sector. Instead of directly competing with India or Taiwan, Bangladesh should prioritize chip design, digital twin simulation, verification, and subsequently assembly and testing (ATP).
4. Post-Production Testing, Packaging, and Customer Feedback Loop:
Transition to Assembly and Testing: After gaining expertise in chip design, gradually enter the semiconductor assembly, testing, and packaging (ATP/OSAT) industry to strengthen its position in the international supply chain.
Overall Lifecycle Monitoring: After releasing chips to the market, real-time collection of user experience and performance data through digital twins. This information should then be used in R&D and subsequent chip design to continuously improve semiconductor quality.
From Dream to Reality
The $1 billion export target is not just a number; it is a test of our national capability. The apparel sector succeeded because we built a strong ecosystem around it for decades. The semiconductor industry requires the same patience, meticulous planning, and technological foresight.
The ‘Silicon River’ vision is certainly achievable. The real challenge is how efficiently we implement these digital-first, difficult tasks to establish a strong position in the global technology supply chain.