Artificial intelligence is transforming economies, jobs, productivity and global power. Semiconductors, the essential hardware for AI, drive this change. In the 20th century, oil shaped power; in the 21st century, semiconductors are playing a comparable role. The semiconductor market, valued at over $630 billion, is expected to reach $1 trillion as demand for AI grows. The Semiconductor Industry Association and the Boston Consulting Group both see the chip market breaking $1 trillion by 2030.

Analysts estimate that China will account for about 60 percent of the growth in the industry over the next five years. The country has launched the 344 billion yuan ($47 billion) "Big Fund III" to boost domestic chip manufacturing and strengthen equipment and materials supply chain.

Morgan Stanley projects China's AI market, including generative AI and infrastructure, could hit $1.4 trillion by 2030, up from $3.2 billion in 2024. For many investors, Chinese AI startups will attract more users in emerging markets because their solutions are cheaper and easier to use.

NVIDIA CEO Jensen Huang says China is only nanoseconds behind the US in AI chips. The Economist wrote that China's chip industry will surprise the world as it aims for semiconductor self-reliance. GlobalData expects China to lead the semiconductor market, driven by fast-growing domestic demand.

Countries across the world are also investing heavily in AI and chips. Pakistan has announced its first large-scale chip manufacturing unit at Faisalabad's M-3 Industrial Estate. Vietnam has a national semiconductor strategy through 2030 and aims to build a long-term semiconductor sector by 2050. Vietnam is also running a workforce program to train at least 50,000 university graduates in the chip value chain by 2030.

But although Bangladesh has formed a national semiconductor task force, the country is lagging behind. This can change if Bangladesh leverages its partnership with China. China has driven Bangladesh's infrastructure through major Belt and Road Initiative projects. China has invested $4.45 billion in 35 BRI projects in Bangladesh and secured construction contracts worth $22.94 billion. This has strengthened Bangladesh's transport and energy sectors, improved logistics, and cut costs. China is Bangladesh's largest trade partner and a major source of foreign direct investment. Bangladesh Bank reports Chinese FDI stock at $2.67 billion as of September 2024.

It is time to expand the Bangladesh-China partnership into semiconductors for mutual benefit in the AI era. The cooperation can benefit both sides. China's semiconductor experience can help Bangladesh by fostering collaborative research and developing qualified engineers and technicians, enabling it to build a workable semiconductor ecosystem incrementally.

China, in turn, can strengthen its regional influence and mitigate supply chain risks. Simultaneously, Bangladesh offers emerging manufacturing locations, low-cost labor, a large pool of workers, and opportunities in China-oriented industrial and economic zones.

The good news is that this cooperation has already started with the signing of a memorandum of understanding between the Bangladesh Semiconductor Industry Association and the Hubei Semiconductor Industry Association of China. To put the cooperation on the fast track, policymakers in Bangladesh should consider the following measures.

First, Bangladesh should set up a special semiconductor investment priority desk to speed up approvals and provide land, utilities, tax, and customs support. It should offer plug-and-play facilities in special economic zones and custom incentives for chip testing, packaging, assembly, and design services. It should also identify five to 10 Chinese companies and create tailored packages for each.

Second, it should encourage joint ventures and public-private partnerships to share the costs and risks, attract anchor Chinese companies, and construct common facilities such as testing labs, packaging plants and training facilities.

Third, the country's semiconductor capacity should be enhanced by partnering with Chinese universities and companies on joint research labs, sponsored research, internships and exchange programs to build local talent and innovation.

A skilled workforce should be developed by offering scholarships, short courses and technician training in chip testing, packaging, electronics and clean-room basics. At least one specialized training center with modern facilities should be built in each division.

Fourth, Bangladesh should also develop a national semiconductor strategy with clear objectives and a multi-year budget. It should establish division-level training centers, scholarships and a national testing lab through a special semiconductor and AI fund. Incentives should be provided based on jobs, exports, and technology transfer. Reliable power and connectivity should be ensured in special zones.

Finally, Bangladesh needs to act now to catch up in the global semiconductor race. Policymakers should implement the steps outlined above without delay or else the country might miss the semiconductor-led opportunities of the AI era. The message is clear: if we keep waiting for tomorrow, we will lose our chance to act today.

Mohammad Shakil Bhuiyan is a faculty member in political studies at Shahjalal University of Science and Technology in Bangladesh.

Mohammad Saiyedul Islam is a senior lecturer and researcher at the School of Overseas Education of Sanming University in China.

The views don't necessarily represent those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.