Semiconductors, vital for devices from smartphones to cars, have seen growing importance with artificial intelligence advancements.
Major players like China, India, the US, and the European Union invest heavily, striving for leadership in this sector.
Brazil’s strategy, however, appears ambivalent.
Previously, Brazil had CEITEC, a semiconductor-focused company, which faced suspension under Bolsonaro but has since been reconsidered due to the Tribunal de Contas da União (TCU).
Now, efforts are directed toward tax incentives to stimulate local production and attract foreign plants.
An extension of the Programa de Apoio ao Desenvolvimento Tecnológico da Indústria de Semicondutores (PADIS) till 2026 aims at annual tax savings of up to US$2 million.
As Henrique de Oliveira Miguel highlighted, this extension promotes photovoltaic panel production, enhancing Brazil’s global solar energy footprint.
Brazil stands in the top ten global photovoltaic producers, a commendable rise from its rank five years ago.
Experts note Brazil’s declining manufacturing contribution since 2000, contrasting with Asian nations bolstering their semiconductor industries.
Alberto Boaventura from Deloitte underlines a comprehensive approach involving public, industrial, and academic sectors for Brazil’s semiconductor growth.
With 11 semiconductor factories focused on final production stages, companies like HT Micron are prepping for the 5G era, securing significant investments.
The broader semiconductor industry emphasizes educational investments due to a skilled workforce shortage.
The OECD points to the sector’s dependence on government backing, suggesting substantial investments for countries seeking sectoral independence.