Brazil seeks investors for chip production

The chip shortage has become a worldwide crisis for the automotive sector, which has already lost millions of cars, exceeding the annual production of players like Stellantis.

Worse than what has already been lost is what is still to come because the crisis is not close to being over, even though semiconductor nationalization initiatives are spreading worldwide.

The fear of an invasion of Taiwan by China would instantly interrupt the global production of chips since the country holds 70% of the worldwide volume of semiconductors.

Because of this, Brazil seeks investors in Japan to have its own national production and not be dependent on Asian imports.

Thus, the government wants to attract supporters to make the components currently lacking in Brazilian automakers, which have had many months with factories stopped and reduced pace.

Paulo Guedes, Minister of Economy, said: “Nobody wants to run the risk of being vulnerable anymore, leaving 70% of the production of components in Taiwan”.

The federal government’s initiative already has the support of Anfavea, being the most interested in local chip production.

Even if the production cost is higher, it will be better to have the component available than not, which would keep the pace of car manufacturing below the market demand or even paralyzed.

In Ribeirão das Neves, Unitec, in the Metropolitan Region of Belo Horizonte (RMBH), is a localized chip production initiative.

Márcio de Lima Leite, president of Anfavea, specifically highlighted this company, although others in the country are ready to produce electronic components for vehicles.

About Japan, Leite explained: “The visit to Japan foresees some meetings with companies that may be interested in this plant or other plants and investments.

Leite commented on Unitec: “They are excellent facilities; the infrastructure remains intact”.

The president of Anfavea said the facility had not been used so far.

With information from Automotive News

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