SIFC to implement plan to develop semiconductor, chip design industry

The Special Investment Facilitation Council (SIFC) is set to implement a plan for developing a semiconductor and chip design industry in Pakistan, targeting multibillion-dollar investment, as reported by Express Tribune.

The initiative requires the government to offer tax incentives and support to attract foreign investment, particularly from China and the U.S., for establishing chip design centers.

The SIFC proposed a government-to-business chip designing facility to stimulate investment and suggested starting with testing and research before fully developing the semiconductor sector.

A semiconductor manufacturing foundry would need an estimated investment of $6-7 billion, with the country facing a shortage of trained professionals.

Muhammad Naqi, CEO of Premier Code, emphasized the need for incremental progress and confidence-building with major industry players to foster investment in testing departments.

He highlighted the necessity of updating educational curricula to address the skilled labor shortage and improving the country's image to ensure a secure environment for investors and visitors.

The government's role in assisting local mobile phone brands to increase market share and ensure intellectual property rights protection was also noted. Following the models of China and India, Pakistan aims to elevate its local brands internationally.

The Pakistan National Semiconductor Plan, initiated in 2022, outlines the potential and challenges of the semiconductor industry, emphasizing the need for improvements in business setup and operations, bridging the academic-industry gap through advanced training centers, and offering incentives to attract chip design companies.

The plan also calls for simplifying the customs process to enhance the country's competitiveness in semiconductor design and manufacturing.

With a large, low-cost labor pool and the backdrop of the US-China trade tensions, Pakistan is poised to position itself as a significant player in the global semiconductor and chip design industry.