The government will withdraw tariffs on the semiconductor industry, and special incentives will be provided: Prime Minister

Photo: Collected

​News Desk: Prime Minister Tarique Rahman has announced that the government will grant tax exemptions in the semiconductor industry to advance Bangladesh in the science and technology sector. He said this while attending the inaugural ceremony of the ‘National Semiconductor Summit and BEAR Summit-2026’ today, Saturday (July 25). He also informed that special incentives will be provided to the semiconductor industry.

​The Prime Minister said, "More than three thousand Bangladeshi semiconductor professionals are currently proving their qualifications in various major technology companies, research institutions, and universities across various countries of the world, including America, Malaysia, South Korea, Japan, Singapore, and Europe."

​He said, "They are also contributing as engineers, architects, researchers, managers, and entrepreneurs."

​He further added, "It is extremely necessary to take initiatives from both public and private sectors to involve these globally recognized talents more deeply in the path of Bangladesh's prosperity."

​Tarique Rahman said, "Bangladesh has already started work in fields such as semiconductor design, verification, training, embedded systems, power electronics, and advanced packaging. Several institutions in the country have already entered the international market as well."

​He said, "The current government considers the semiconductor sector as a national priority sector. However, the development of this sector is probably not the task of a single ministry or institution." He mentioned that the semiconductor sector is a collective national mission.

​The head of government said, "This is a collective national mission. The responsibility of this mission is not just on the government. At the same time, I believe that universities, research institutions, the industrial sector, entrepreneurs, and expatriate experts—it is our collective responsibility."

​He said, "To achieve that goal, the current government, respecting the needs expressed by those involved in this sector during discussions with us regarding the current budget to advance the semiconductor industry, has taken several steps in this budget to see how this sector can be moved forward." The Prime Minister stated that tariffs on raw materials for the semiconductor industry have been withdrawn.

​He said, "All types of taxes or tariffs on all raw materials for building the semiconductor industry have been withdrawn. Initiatives have also been taken to introduce cash incentives on export earnings from semiconductor design services."

​Regarding startup grants, he said, "At the same time, for new entrepreneurs and to implement innovation, the government for the first time has allocated a startup grant of 500 crore BDT per year."

​Tarique Rahman said, "This process has already begun, and we have tried to ensure that this startup grant reaches people correctly to encourage them as much as possible."

​He said, "The current government has already begun implementing comprehensive plans to create a business-friendly environment for the semiconductor industry."

​He further said, "The government is constantly striving to ensure investment-friendly policies, tax benefits, bonded facility provisions, and specialized infrastructure." He also announced plans to construct a biotech park alongside the high-tech parks.

​The Prime Minister said, "Alongside modernizing the existing high-tech parks, we are planning to construct a biotech park as well."

​He said, "Those involved in Bangladesh's semiconductor industry recently organized roadshows in Malaysia, South Korea, and America. You have presented the potential of Bangladesh's semiconductors on an international level. This is undoubtedly a praiseworthy matter." However, the head of government also noted that multidimensional challenges exist in this area.

​He said, "Undoubtedly, multidimensional challenges lie ahead of us. There might be a skill shortage in certain areas. Lab limitations exist, and there might be investment limitations as well. Tough competition also exists in the international market. However, we have an indomitable will to overcome all limitations and move forward."

​He further added, "I want to assure you from my government's position that, to help your indomitable will reach its desired goal, the current government, Insha'Allah, is and will remain by your side with all its capacity and capability."

​He mentioned that after the readymade garments (RMG) industry, the semiconductor industry could become Bangladesh's new investment sector.

​Tarique Rahman said, "Overcoming limitations, adversities, and various obstacles, Bangladesh has currently shown success in agriculture, the garment industry, foreign remittances, and digital services. Relying on the innovative power of our talented youth, skilled, and energetic workforce, I firmly believe that after garments, the semiconductor industry can become another promising economic cornerstone for Bangladesh."

​He concluded by saying, "To realize this goal, I extend a humble call to the concerned ministries, government agencies, universities, industry sector, expatriate professionals, and development partners to work together in a coordinated manner."