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Bhutan Plans to Boost Its Economy with Silicon Chip and Graphite Battery Industries

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Asim Khan
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Bhutan's government is looking into the possibility of establishing silicon chip and graphite battery industries in the country to transform its industrial sector and strengthen its economy. As part of its Industry Transformation Roadmap, the government aims to increase the GDP share from the manufacturing sector from 6 percent to 15 percent by 2029.

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Ferro-silicon is already the country’s top exported goods

Advantaged by its abundant deposits of silicon and graphite, Bhutan is well-suited for these industries. Ferro-silicon is already the country’s top exported goods, with exports worth 16.22B in 2022 and Nu 15.28B in 2021, and many ferrosilicon factories are emerging in the country. The government is confident that these two industries will be successful and help the country reach its goal of doubling its gross domestic product (GDP) to USD 5 billion (B) and USD 10B by 2034, with the biggest share coming from the industry sector.

To attract foreign direct investment (FDI) and make these industries a success, the government recognizes the need to improve its capacity and capability. "An improvement will be needed in our capability and capacity, including attracting more foreign direct investments (FDIs) in the sector," said Karma Dorji, the Minister of Industry, Commerce, and Employment.

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(Read Also: Silicon Valley Startup EdgeQ Raises $75 Million to Ramp Up 5G Chip Production)

Policy reforms will create a conducive environment

Bhutan's government believes that setting a vision and roadmap, along with support and policy reforms, will create a conducive environment for the private sector and FDIs to start these manufacturing plants.

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Bhutan has abundant deposits of silicon and graphite, the primary raw materials required for the production of silicon chips and graphite batteries. Ferro-silicon is already the country's top exported goods, indicating the potential success of these industries. With the government's support and policy reforms, Bhutan is looking to capitalize on its advantages and create a favorable environment for private sector investments in these manufacturing plants.

(Read Also: US and Japan Strike Trade Deal on EV Battery Minerals and Tax Credits)

Government's Plan to Transform the Industry Sector

The government aims to increase the GDP share from the manufacturing sector from 6 percent to 15 percent by 2029 as part of its Industry Transformation Roadmap. It believes that the biggest share in doubling the country's gross domestic product (GDP) to USD 5 billion (B) and USD 10B by 2034 will come from the industry sector. The government's vision and roadmap, along with support and policy reforms, will create a conducive environment for private sector investments in the manufacturing plants for silicon chip and graphite batteries.

(Read Also: Italy’s Economy Shows Signs of Recovery in Q1 2023)

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