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:

Ads

You May Also Like

Brazil’s Industry Leaders Want to Bypass Mercosur and Sign EU Accord

A group of businessmen belonging to Brazil's powerful National Confederation of Industry, CNI, said ...

Mouth- watering Bit

OTHER BRAZILIAN FOODS By Habeeb Salloum The first time I entered a restaurant in ...

Brazil: It’s the Economy, Mr. Lula

Lula’s popularity is eroding in Brazil, but for all the bad press, the majority ...

Brazil Air Transportation Model Scares Investors and Keeps System Broken

As Brazil suffers with shortcomings in its airport infrastructure, the airport management business around ...

Brazil’s Car Sales Up 5.4% in May, But Down for the Year

Sales of autos in Brazil rose 5.4% in May when compared to  April, rebounding ...

World Corruption Index Downgrades Brazil to 70th Place

Brazil came in 70th place in the latest Corruption Perceptions Index (CPI) released Monday, ...

US and EU Subsidies of US$ 13 Billion Harm Brazil and Developing Nations

The European Union and the United States are illegally subsidizing their production of corn, ...

Latin Grammy Celebrates Brazil Dishing Out Awards to Veloso and Mercury

Brazilian singer-composer Caetano Veloso, who is on a three-week tour of the United States ...

A cornfield in Brazil

In Brazil Corn Grains Are Gold Again

Corn was once the ugly duckling of agriculture. Prices went on a free fall ...

Brazil Indians Get Land, But They Are Occupied

Last night, during Brazil’s Regional Confederation of Indigenous Nations, in Dourados, in the state ...