US, EU and Asia, All Interested in Making Microchips in Brazil

Industries from European and Asian countries, as well as the United States, are interested in setting up semiconductor factories in Brazil, declared Henrique de Oliveira Miguel, coordinator of Microelectronics in the Ministry of Science and Technology.

Semiconductors are components of the microcircuits or "chips" used in electronic equipment.

According to Miguel, the number of consultations by foreign manufacturers seeking information from the Brazilian government has risen since the Industrial, Technological, and Foreign Trade Policy was launched in March, 2004.

Discussions over the introduction of digital television in Brazil have ratcheted up interest in domestic production of semiconductors even more.

Both the Japanese and the Europeans, who, together with the Americans, are competing with one another to furnish digital TV technology to Brazil, have held out the prospect of producing semiconductors in the country as one of the potential advantages of opting for their respective systems.

Brazil has desired the installation of this type of industry in the country for some time. The country does not produce the microchips used in computers, cell phones, and televisions, for example.

As a result, the country spends around US$ 2.5 billion a year just to import microchips, nearly half of the sum total of US$ 5.2 billion spent each year to acquire electronic equipment and components in general.

The Ministry of Science and Technology has calculated that domestic production of chips would help the country’s trade balance to the tune of around US$ 2.7 billion. This does not take into account the possibility that, besides importing less, Brazil could add to its revenues by exporting microchips.

Over the past 25 years, the sector has grown at an annual rate of 13.5%. The microchip market turned over US$ 226 billion in 2005, compared with US$ 140 billion in 2002.

Early this month, a US company set up a unit in the municipality of Atibaia, in the state of São Paulo, to carry out one of the final stages of microchip production, known as encapsulation and memory-testing.

Agência Brasil

Tags:

You May Also Like

Brazil Is Back to a Bull Market: Stocks Up 33% This Year

The capital market in Brazil is attracting great attention of investors of other emerging ...

Brazil Calls IMF’s Report on Country’s Economy Wrong and Stupid

For Brazil’s Finance minister Guido Mantega the International Monetary Fund’s assessment that Brazil’s fiscal ...

Fed Up with “Dollar Tensions” Brazil and Argentina Step Up Trade in Local Currency

In order to avoid being submitted to the "greenback's tensions," Mercosur, the South American ...

Air France Tragedy: Brazilian Navy Finds 8 More Bodies. 24 Recovered Now

Brazilian Air Force and Navy search teams together with  the French have recovered now ...

Shedding Movie Light on Brazil’s and Latin American Left

Perhaps 2004 will go down in history as the year the Latin American Left ...

Organic Farmers from Brazil Show Their Stuff at Nuremberg’s Biofach

The Biofach, the world largest international fair for organic products, gets underway this Thursday, ...

US Recession Won’t Reach Copacabana Beach, Says Brazilian Minister

Thanks to a high global demand for agricultural products, ethanol and iron ore and ...

How the Kyoto Protocol Is Helping Brazil to Clean Its Act

To use sanitary landfills to generate energy, to decrease environmental pollution, and to obtain ...

Brazilians emigrants to send US$ 7.4 billion back to Brazil

Latin Americans Send US$ 72 Billion Back Home. Brazil’s Share: US$ 7.4 Billion

In spite of United States efforts by 2010 remittances from migrants will reach US$ ...

Why Terror Won’t Bloom Here

Brazilians used the American tragedy to make fun of themselves. This is one of ...