Over the last decade the Chinese government has consistently strived to overcome China’s dependence on foreign supplies in the sector, and as a result China’s market share in semiconductors has increased from 5 percent in 2010 to 13 percent in 2020, more than doubling in ten years. China is moving along with the planned schedule to achieve supremacy in manufacturing semi-conductors.
Tax justice from 100 years old income tax law.pdfM S Siddiqui
Roughly 94 per cent of income-tax revenue comes from tax deducted at source. The Tax deduct as source (TDS) has been imposed at border during release of imported goods and services, supply of goods and services to government and corporates entities. This deduction is on gross sales value but not on net profit. The advances taxes are non-refundable and considered as tax on income. In many cases the tax burden are more than 100 percent of the net income of the business enterprises.
Bangladesh’s cross border transaction in Chinese RMB.pdfM S Siddiqui
Banks are finally allowed to maintain accounts in Chinese currency RMB with their correspondents or overseas branches for cross-border transactions executed in Bangladesh.
Meanwhile, China has introduced cross-border interbank payments system (CIPS) with the RMB as an alternative trading currency. CIPS payment system offers clearing and settlement services for participates in cross-border RMB payment and trade.
Evaluation of Bangladesh’s Data Protection Bill.pdfM S Siddiqui
The draft Data Security Law did not make difference between data privacy and data security and a big concern was how to maintain the privacy of such data. The problem is that the government has expressed a controlling attitude to make the law a control mechanism rather than data security and data privacy.
Rights of the nominee vis-à-vis legal heirs.docxM S Siddiqui
Currently, the banks may follow the rule of Bangladesh Bank and the principle of the judgment of the High Court Division that the nominee is entitled to the money of the deceased person and pay to the nominee at the first instance to complete their responsibility. Subsequently, the nominee will be treated as a custodian in case of a succession certificate given by the court and distribute the amount accordingly.
Bangladesh bank’s rules of export documents require an amendmentM S Siddiqui
The Factoring services provide security of payment and financing through transfer of shipping documents along with ownership and rights over the payments. The circular no. 32 (dated October 03, 2021) restricting transfer of document will hamper smooth service of Factoring and export financing by trade finance companies. The BB should revisit the circular addressing the embargo over transfer of full set of documents.
Access to finance for the informal sectorM S Siddiqui
Bangladesh may formulate policies to use these sources to in credit reporting systems. There may be even legal framework like some other some economies to allow the sharing of information from non-traditional sources and authorised CRSPs to prepare CR for MSMEs.
Ad free channel ends unfair privileges to overseas manufacturersM S Siddiqui
The Clean Feed Strategy would give a level playing field to Bangladeshi manufacturers and foreign manufactures. Although late the government has taken a bold decision.
Tax justice from 100 years old income tax law.pdfM S Siddiqui
Roughly 94 per cent of income-tax revenue comes from tax deducted at source. The Tax deduct as source (TDS) has been imposed at border during release of imported goods and services, supply of goods and services to government and corporates entities. This deduction is on gross sales value but not on net profit. The advances taxes are non-refundable and considered as tax on income. In many cases the tax burden are more than 100 percent of the net income of the business enterprises.
Bangladesh’s cross border transaction in Chinese RMB.pdfM S Siddiqui
Banks are finally allowed to maintain accounts in Chinese currency RMB with their correspondents or overseas branches for cross-border transactions executed in Bangladesh.
Meanwhile, China has introduced cross-border interbank payments system (CIPS) with the RMB as an alternative trading currency. CIPS payment system offers clearing and settlement services for participates in cross-border RMB payment and trade.
Evaluation of Bangladesh’s Data Protection Bill.pdfM S Siddiqui
The draft Data Security Law did not make difference between data privacy and data security and a big concern was how to maintain the privacy of such data. The problem is that the government has expressed a controlling attitude to make the law a control mechanism rather than data security and data privacy.
Rights of the nominee vis-à-vis legal heirs.docxM S Siddiqui
Currently, the banks may follow the rule of Bangladesh Bank and the principle of the judgment of the High Court Division that the nominee is entitled to the money of the deceased person and pay to the nominee at the first instance to complete their responsibility. Subsequently, the nominee will be treated as a custodian in case of a succession certificate given by the court and distribute the amount accordingly.
Bangladesh bank’s rules of export documents require an amendmentM S Siddiqui
The Factoring services provide security of payment and financing through transfer of shipping documents along with ownership and rights over the payments. The circular no. 32 (dated October 03, 2021) restricting transfer of document will hamper smooth service of Factoring and export financing by trade finance companies. The BB should revisit the circular addressing the embargo over transfer of full set of documents.
Access to finance for the informal sectorM S Siddiqui
Bangladesh may formulate policies to use these sources to in credit reporting systems. There may be even legal framework like some other some economies to allow the sharing of information from non-traditional sources and authorised CRSPs to prepare CR for MSMEs.
Ad free channel ends unfair privileges to overseas manufacturersM S Siddiqui
The Clean Feed Strategy would give a level playing field to Bangladeshi manufacturers and foreign manufactures. Although late the government has taken a bold decision.
Pandemic recession and employment crisisM S Siddiqui
The policy of Bangladesh Bank and attitude of commercial banks have many challenges to overcome regarding these programmes. They require a change in mind-set and political will to recognize the crisis and probable solution. There should a recognition that informal workers and their livelihood activities represent the broad base of the economy producing essential goods and services not only for low-income customers but also for the general public and for the formal economy.
How to upgrade bangladesh’s banking almanacM S Siddiqui
The confidence of users is a big challenge for an almanac. The authentication of information is a basic criterion of a good almanac. The authority may take initiative to upload the almanac in their web-site and make easily accessible for the end users specially the FI in other countries.
Bangladesh needs rules on odourised lpgM S Siddiqui
It is impossible to detect the leak because of the lack of odour. This has led different countries to enact new regulations that require gas suppliers to odourise LPG.
The experience of the other countries doesn’t support the fear of NBR officials. This conception of officials is a challenge of introduction of PCA in Bangladesh.
With the ratification of the TFA in 2016, Bangladesh has obligation to introduce PCA in the customs rule. The relevant SRO should be issues as early as possible.
Abrupt indian ban on onion seeds not legalM S Siddiqui
Bangladesh became self-reliant in Cattle production after restriction on cattle export / smuggling during last few years. Let's hope that the statistics of Bangladesh Agricultural Department are correct and Bangladesh will hopefully continue to be self-reliant of onion despite Indian ban on export of onion and onion seed.
Miniket may be branded for marketing by any company but cannot claim this as local variety of rich. It cannot be registered under patent act. The fate of Miniket is depends upon teste and demand of the consumers.
Psi of govt purchase contrary to import policyM S Siddiqui
The inspection by government official is against the Import Policy Order as well as it is expensive for the nation and not serving the real purpose. The inspectors are not liable for any incidence of wrong delivery.
Disappearance of border pillars and death from lightning strikeM S Siddiqui
In south Asia the casualties have been increases in recent years. But apart from climate change, the recent increase of death of lightning has linkage with the silent disappearance of Border pillars of Mouja installed by British rulers in South Asia.
The standard global practice of other countries, the credit information reports neither express any opinion about the borrower creditworthiness nor assign any rating to the borrowers.
Hashem foods fire determining the liability of regulatorsM S Siddiqui
Despite all the irregularities, how industries get fitness certificate from DIFE on yearly basis is a question. Hashem Food started their business in 1982 and DIFE has been certifying it on yearly basis since then.
Regional co-operation under SAARC may be an additional blessing to solve the problem. Bangladesh apparently failed to get mutual co-operation from neighboring countries. Bangladesh may shift the policy on prevention, education and training of all stakeholders to eradicate drugs from our society.
Aila re naya daman folksong belongs to whomM S Siddiqui
Copyright protection is one such important and strong protection guaranteed under intellectual property laws. The expressions of folklore are undoubtedly a product of human genus and intellect and hence deserve adequate protection under the fast-growing system of intellectual property rights laws. The folk song Aila re naya daman is the property of the community, and not of any individual.
The budget of FY22 cannot be considered as budget of pandemic period. The common people were expecting a lot from this budget but unfortunately there was no good news for them.
Action of competition commission on school dress salesM S Siddiqui
The recent action of Competition Commission to punish a single supplier of Viqarunnisa School and Collage. The Commission only warned the School authority not to have such practice in future. It attract minor attention of the media but the there is no reaction among the social leaders.
Bangladesh may pursue SAPTA and APTA members to incorporate different provision to ensure smooth supply of essential products and medical supplies in order to meet the future pandemic crisis.
Although other departments of the government shall look after market completion, polices etc. BMRC is going beyond jurisdiction to create an oligopoly situation of three brands of vaccine and depriving the nation from an own successful research. Bangladesh could be proud of global standard research by a local company.
Bangladesh should find an alternate way of fighting coronavirus and keep the wheels of the economy in motion. While health is a very real concern for Bangladesh to sustain amid the Covid-induced restrictions, all of us should focus all of the country's resources on ensuring that no one goes without food.
Ip and sm es taking your ideas to marketM S Siddiqui
It is not just patents but also trademarks, geographical indications, industrial designs, utility models, trade secrets, copyright, and related rights, new varieties of plants among entrepreneurs and business advisers within public and private SME support institutions.
Resolving confusion over capital gain taxM S Siddiqui
NBR may clarify some of the issues related to rate of CGT on primary share subscribed by local and non-resident investors and sales in subsequent time. The transparency of policies encourages FDI into Bangladesh. The rate of CGT on transaction in the secondary market should also be clarified.
Pandemic recession and employment crisisM S Siddiqui
The policy of Bangladesh Bank and attitude of commercial banks have many challenges to overcome regarding these programmes. They require a change in mind-set and political will to recognize the crisis and probable solution. There should a recognition that informal workers and their livelihood activities represent the broad base of the economy producing essential goods and services not only for low-income customers but also for the general public and for the formal economy.
How to upgrade bangladesh’s banking almanacM S Siddiqui
The confidence of users is a big challenge for an almanac. The authentication of information is a basic criterion of a good almanac. The authority may take initiative to upload the almanac in their web-site and make easily accessible for the end users specially the FI in other countries.
Bangladesh needs rules on odourised lpgM S Siddiqui
It is impossible to detect the leak because of the lack of odour. This has led different countries to enact new regulations that require gas suppliers to odourise LPG.
The experience of the other countries doesn’t support the fear of NBR officials. This conception of officials is a challenge of introduction of PCA in Bangladesh.
With the ratification of the TFA in 2016, Bangladesh has obligation to introduce PCA in the customs rule. The relevant SRO should be issues as early as possible.
Abrupt indian ban on onion seeds not legalM S Siddiqui
Bangladesh became self-reliant in Cattle production after restriction on cattle export / smuggling during last few years. Let's hope that the statistics of Bangladesh Agricultural Department are correct and Bangladesh will hopefully continue to be self-reliant of onion despite Indian ban on export of onion and onion seed.
Miniket may be branded for marketing by any company but cannot claim this as local variety of rich. It cannot be registered under patent act. The fate of Miniket is depends upon teste and demand of the consumers.
Psi of govt purchase contrary to import policyM S Siddiqui
The inspection by government official is against the Import Policy Order as well as it is expensive for the nation and not serving the real purpose. The inspectors are not liable for any incidence of wrong delivery.
Disappearance of border pillars and death from lightning strikeM S Siddiqui
In south Asia the casualties have been increases in recent years. But apart from climate change, the recent increase of death of lightning has linkage with the silent disappearance of Border pillars of Mouja installed by British rulers in South Asia.
The standard global practice of other countries, the credit information reports neither express any opinion about the borrower creditworthiness nor assign any rating to the borrowers.
Hashem foods fire determining the liability of regulatorsM S Siddiqui
Despite all the irregularities, how industries get fitness certificate from DIFE on yearly basis is a question. Hashem Food started their business in 1982 and DIFE has been certifying it on yearly basis since then.
Regional co-operation under SAARC may be an additional blessing to solve the problem. Bangladesh apparently failed to get mutual co-operation from neighboring countries. Bangladesh may shift the policy on prevention, education and training of all stakeholders to eradicate drugs from our society.
Aila re naya daman folksong belongs to whomM S Siddiqui
Copyright protection is one such important and strong protection guaranteed under intellectual property laws. The expressions of folklore are undoubtedly a product of human genus and intellect and hence deserve adequate protection under the fast-growing system of intellectual property rights laws. The folk song Aila re naya daman is the property of the community, and not of any individual.
The budget of FY22 cannot be considered as budget of pandemic period. The common people were expecting a lot from this budget but unfortunately there was no good news for them.
Action of competition commission on school dress salesM S Siddiqui
The recent action of Competition Commission to punish a single supplier of Viqarunnisa School and Collage. The Commission only warned the School authority not to have such practice in future. It attract minor attention of the media but the there is no reaction among the social leaders.
Bangladesh may pursue SAPTA and APTA members to incorporate different provision to ensure smooth supply of essential products and medical supplies in order to meet the future pandemic crisis.
Although other departments of the government shall look after market completion, polices etc. BMRC is going beyond jurisdiction to create an oligopoly situation of three brands of vaccine and depriving the nation from an own successful research. Bangladesh could be proud of global standard research by a local company.
Bangladesh should find an alternate way of fighting coronavirus and keep the wheels of the economy in motion. While health is a very real concern for Bangladesh to sustain amid the Covid-induced restrictions, all of us should focus all of the country's resources on ensuring that no one goes without food.
Ip and sm es taking your ideas to marketM S Siddiqui
It is not just patents but also trademarks, geographical indications, industrial designs, utility models, trade secrets, copyright, and related rights, new varieties of plants among entrepreneurs and business advisers within public and private SME support institutions.
Resolving confusion over capital gain taxM S Siddiqui
NBR may clarify some of the issues related to rate of CGT on primary share subscribed by local and non-resident investors and sales in subsequent time. The transparency of policies encourages FDI into Bangladesh. The rate of CGT on transaction in the secondary market should also be clarified.
1. Ongoing war on semiconductors
M S Siddiqui
https://businesspostbd.com/editorial/2022-09-07/ongoing-war-on-semiconductors
07 Sep 2022 00:02:17 | Update: 07 Sep 2022 00:02:17
Semiconductors — also known as computer chips or just chips, otherwise called an integrated
circuit, a microelectronic chip, or a computer chip, is a tiny electronic device composed of billions
of components that store, move, and process data.
Semiconductors are used for many purposes in many types of products, for example to run software
applications, to temporarily store documents and provide data storage and communication capabilities in
countless devices, including mobile phones, gaming systems, aircraft avionics, industrial machinery and
various types of military equipment and weapons.
It is an integral to all the networked devices that have become embedded into our lives. They also have
advanced military applications. Transformational, super-fast 5G internet is enabling a world of connected
devices of every kind (the ‘Internet of Things’) and a new generation of networked weapons.
Over the last 30 years, the US share of global semiconductor manufacturing capacity has dropped from 37
per cent to 12 per cent. Washington dominates the chip design market. US firms such as Intel, Micron,
Broadcom and Qualcomm continue to produce chips overseas or contract out production to foreign firms
over lack of domestic manufacturing capability.
China consumes 60 percent of global semiconductor production, more than 90 percent of which comes
from overseas or China-based foreign firms. Most of the world's top semiconductor companies are from
the US, followed by Europe, South Korea, Taiwan, and Japan. There is none from China, which is a huge
obstacle to its plan to build a "world class" army that will beat any enemy anywhere in the world. This is
a strategic black hole Beijing cannot afford to have. Besides, control of a major part of the semiconductor
value chain will give it significant bargaining power.
Only Taiwan Semiconductor Manufacturing Corporation (TSMC) and South Korean Samsung can make
the most advanced semiconductors (five nanometres in size) ‘puts at risk the ability to supply current and
future [US] national security and critical infrastructure needs.’ The TSMC has a 53 per cent market share
of the global foundry market (factories contracted to make chips designed in other countries). Other
Taiwan-based manufacturers claim a further 10 per cent of the market. Taiwan’s autonomy has become a
vital geopolitical interest for the US, because of the island’s dominance of the semiconductor
manufacturing market. Taiwan’s position in the world of semiconductor manufacturing is a bit like Saudi
Arabia’s status in OPEC.
2. Now a broader ‘tech war’ going on between the United States and China, in which the United States is
aiming to constrain China’s technological development and prevent it from exercising a global tech
leadership role. This has always been a sore point for China, which sees self-sufficiency in the
technological field as a necessary condition for reaching the status of a wealthy, developed nation, which
represents the largest market for this technology in the world.
The turning point in China’s interest in semiconductors came in 2014, when the State Council set a goal
of becoming a global leader in semiconductors by 2030. In 2015, the Made in China 2025 project was
launched, aiming for greater technological self-sufficiency. The first goal was to foster the creation of
national champions in the industry that could compete on a global scale and supply China’s voracious
appetite for semiconductors. The second objective was to acquire foreign technology through strategic
acquisitions of technologically advanced foreign companies or private Chinese companies operating
abroad.
Keeping in mind for self-sufficiency, China has promulgated the “Guidelines for the Promotion and
Development of the National Integrated Circuit Industry” in 2014 and its integration into the “Made in
China 2025” plan of 2015.
In the Guidelines, their objective was to formulate a series of priorities “to accelerate advancement of the
National Integrated Circuit Industry” in each of the four sectors previously cited (chip design,
manufacturing, packaging and equipment manufacturing) in order to reach an advanced international
level by 2030 “with some enterprises entering the ranks of international frontrunners and achieving
development by leaps and bounds”.
The Guidelines also recommended the creation of political structures and policies necessary to implement
massive investment in the sector needed to achieve those objectives, by 2015. This was achieved with the
formulation of the “Made in China 2025” plan, which provided a precise schedule for the whole project
by distinguishing three phases.
The first phase of the plan to see China gaining more self-sufficiency in the sectors, with Chinese
suppliers meeting 70 percent of the country’s needs in semiconductors and becoming a relevant
component of the global chain of production by 2025. During the second phase, by 2035, Chinese
manufacturing should reach “an intermediate level among world manufacturing powers” assuming a
leading role in the innovation of the industries where it is most competitive. Finally, in the third phase of
the plan, China’s ambition is to become the “leader among manufacturing powers” by 2049, the
centennial of the founding of the PRC.
To achieve this, the Semiconductor Industry Association (SIA) came up with a white paper of 2021, the
Chinese government made several big investments: in 2014, it instituted the National Integrated Circuits
Industry Development Investment Fund (“Big Fund”) which by 2021 had invested $39 billion in the
sector, most of which went into manufacturing with the goal to increase China’s share in global
semiconductor production.
To that we must add, again according to the SIA white paper, $25 billion in IC investments by local
governments and more than $50 billion accounting for “government grants, equity investments, and low
interest loans”.
The Chinese plan has shown results and Chinese semiconductor firms are making progress particularly in
chip design and fabrication which, might cause China to “meet 25 per cent to 40 per cent of its domestic
3. demand with locally designed semiconductors by 2025, more than double its current level but still below
its own 70 per cent ambition”.
The US has counter plan and attempts to stop the Chinese from acquiring and developing superior
technology was one of the main reasons behind the start of the still ongoing “US-China Trade War”,
along with the issue of the China-US trade deficit. USA did not hesitate to ban Huawei in 2018 and other
Chinese firms in the sector from trading with the US federal government under allegations, later contested
by British and German intelligence agencies, of industrial espionage, which provoked Chinese retaliation
and was one of the first shots in the trade war.
The important aspect of US House speaker Nancy Pelosi’s trip was the meeting with Mark Lui, chairman
of the TSMC has been largely overlooked of her Taiwan trip. She had played her role to convince TSMC
— the world’s largest chip manufacturer, on which the US is heavily dependent — to establish a
manufacturing base in the US and to stop making advanced chips for Chinese companies.
Moreover, the US Congress has just passed the Chips and Science Act, which provides $52 billion in
subsidies to support semiconductor manufacturing in the USA. But companies will only receive Chips
Act funding if they agree not to manufacture advanced semiconductors for Chinese companies. This
means that the TSMC and others may well have to choose between doing business in China and in the
United States because the cost of manufacturing in the United States is deemed to be too high without
government subsidies.
Over the last decade the Chinese government has consistently strived to overcome China’s dependence on
foreign supplies in the sector, and as a result China’s market share in semiconductors has increased from
5 percent in 2010 to 13 percent in 2020, more than doubling in ten years. China is moving along with the
planned schedule to achieve supremacy in manufacturing semi-conductors.
The writer is Non-Government Adviser, Bangladesh Competition Commission. He can be contacted
at mssiddiqui2035@gmail.com