Prime Minister Announces Zero Tariffs on Raw Materials, Special Incentives for Semiconductor Industry

The Prime Minister made these announcements while addressing the inaugural ceremony of the "National Semiconductor Symposium and BEAR Summit-2026" as the chief guest at the Novo Theatre in the capital on Saturday (July 25).

He noted that currently, more than 3,000 Bangladeshi semiconductor professionals are successfully working in top-tier technology firms, research organizations, and universities across the United States, Malaysia, South Korea, Japan, Singapore, and Europe. As engineers, researchers, architects, managers, and entrepreneurs, they are demonstrating Bangladesh's capabilities on the global stage.

The Prime Minister emphasized the need for coordinated public and private initiatives to more effectively integrate these talented expatriate professionals into the country's development framework.

He informed the audience that operations have already commenced in Bangladesh in areas such as semiconductor design, verification, embedded systems, power electronics, training, and advanced packaging. Furthermore, several domestic companies have already made their foray into the international market.

"The semiconductor industry is not just a sector; it is a national mission," stated Tarique Rahman. "The government, universities, research institutions, industry leaders, entrepreneurs, and expatriate experts must all work collaboratively for its development."

He highlighted that in the current budget, all types of taxes and duties on raw materials for the semiconductor industry have been eliminated. Additionally, steps are being taken to introduce cash incentives on export earnings derived from semiconductor design services.

To foster innovation among new entrepreneurs, the government has allocated an annual startup grant of BDT 5 billion (500 crore) for the first time, the Prime Minister announced. He confirmed that the implementation of this program is already underway, with grants currently being disbursed to eligible entrepreneurs.

The head of government mentioned that efforts to provide tax benefits, bonded warehouse facilities, and specialized infrastructure development are ongoing to cultivate an investment-friendly ecosystem for the semiconductor sector. Alongside the modernization of existing Hi-Tech Parks, the government also has plans to establish a Biotech Park.

He commended the recent roadshows organized in Malaysia, South Korea, and the United States for effectively showcasing the potential of Bangladesh's semiconductor sector internationally. However, he also acknowledged several prevailing challenges, including the need for a skilled workforce, advanced research laboratories, increased investment, and the ability to navigate global competition.

Tarique Rahman expressed firm conviction that Bangladesh will overcome these limitations and move forward. He assured that the government will stand by the industry with the utmost utilization of its resources.

He further projected that, following agriculture, ready-made garments, remittances, and digital services, the semiconductor industry has the potential to become the next major driving force of Bangladesh's economy.

Concluding his address, the Prime Minister called upon relevant ministries, government agencies, universities, the industrial sector, expatriate professionals, and development partners to work together in a unified and coordinated manner.