SIFC Plans to Establish Chip & Semi-Conductor Industry in Pakistan

Recently, a source revealed that the Special Investment Facilitation Council (SIFC) is planning to bring the chip design and semiconductor industries to Pakistan. It can prove beneficial for the country’s future as it can boost its mobile phone and overall IT industry.

As per the details, SIFC has put forward a proposal for a government-to-business (G2B) chip design facility, including the establishment of a semiconductor industry. To achieve this, the government will have to work with foreign investors, specifically from China and the US, by providing tax relaxation and other support programs to set up chip design centers in the country.

The suggested roadmap highlights the need to begin with the testing and research phases before advancing to full-fledged semiconductor manufacturing. Establishing a local semiconductor facility may require an investment of around $6-7 billion and highly trained human resources.

A local smartphone assembler emphasized the necessity of winning the confidence of famous chip manufacturing companies such as Intel, AMD, Nvidia, Qualcomm, MediaTek, and Unisoc. Moreover, it also called for updating Pakistan’s curriculum to produce the local workforce required for this excellent initiative.

By utilizing its strengths, especially in the domain of mobile phones with their high sales volume, the country can help local brands expand their market share, localize components, add value, and protect intellectual property rights.

It is pertinent to mention here that the groundwork for the establishment of the chip and semiconductor industry was laid in 2022 with the Pakistan National Semiconductor Plan, which outlined a few challenges, and recommendations.

Challenges:

• The country’s reputation for business unfriendliness.
• Lack of trained graduates in chip design.
• Absence of incentive plans for chip designing companies.

Recommendations:

• Establishment of advanced training centers,
• Offering world-class incentives to attract international companies.
• Improvements in the ease of doing business,
• Streamlining customs procedures.