In a bid to revolutionize its tech sector, Pakistan is gearing up to launch a strategic initiative aimed at fostering the development of a robust semiconductor and chip design industry.
In a bid to revolutionize its tech sector, Pakistan is gearing up to launch a strategic initiative aimed at fostering the development of a robust semiconductor and chip design industry. The ambitious plan, spearheaded by the Special Investment Facilitation Council (SIFC), sets its sights on attracting multibillion-dollar investments into the country’s burgeoning tech landscape, as revealed by the Express Tribune.
The cornerstone of this initiative hinges on the government’s commitment to extend lucrative tax incentives and unwavering support, aimed chiefly at enticing foreign investments, notably from economic powerhouses like China and the United States. Central to the proposal is the establishment of state-of-the-art chip design centers, envisioned to pave the way for a thriving semiconductor ecosystem.
Proposing a novel government-to-business chip designing facility, the SIFC envisions this as a catalyst for stimulating investment, advocating for a phased approach starting with rigorous testing and research endeavors before scaling up the semiconductor sector.
However, the journey towards semiconductor self-sufficiency presents its own set of challenges. With estimates suggesting a staggering investment requirement ranging between $6 to $7 billion for setting up a semiconductor manufacturing foundry, Pakistan finds itself grappling with a shortage of skilled professionals in this niche domain.
Muhammad Naqi, CEO of Premier Code, underscored the imperative of fostering incremental progress and building confidence among major industry stakeholders to catalyze investments, particularly in bolstering testing departments. Naqi also stressed the urgent need for revamping educational curricula to address the acute shortage of skilled labor, alongside bolstering efforts to enhance the country’s image as a secure investment destination.
Moreover, the government’s proactive role in bolstering local mobile phone brands to expand their market share while ensuring robust intellectual property rights protection has been highlighted. Drawing inspiration from the success stories of China and India, Pakistan is steadfast in its endeavor to elevate homegrown brands onto the global stage.
Initiated back in 2022, the Pakistan National Semiconductor Plan lays out a comprehensive roadmap delineating the immense potential and formidable challenges confronting the semiconductor industry. Central to this strategy is the imperative of streamlining business setup procedures, bridging the academia-industry gap through the establishment of advanced training centers, and offering lucrative incentives to entice chip design behemoths.
Furthermore, the plan advocates for streamlining customs procedures to bolster Pakistan’s competitiveness in semiconductor design and manufacturing, thereby positioning the nation as a formidable contender in the global tech arena.
Backed by a vast reservoir of low-cost labor and against the backdrop of escalating US-China trade tensions, Pakistan stands poised to emerge as a major player in the global semiconductor and chip design landscape. With the implementation of the Special Investment Plan, Pakistan embarks on a transformative journey, heralding a new era of technological prowess and economic resilience.