Under the proactive promotion of the Brazilian government, a significant policy aimed at accelerating the development of the domestic semiconductor industry has been approved. Brazilian President Luiz Inácio Lula da Silva signed the Brazilian Semiconductor Plan (PL13/2020) on September 11th, a move that is expected to bring over 30 billion reais (approximately $6 billion USD) in investment to Brazil’s semiconductor industry over the next few years.
The new regulation extends incentive measures for the semiconductor and information and communication technology sectors until 2029 and authorizes the Brazilian National Economic and Social Development Bank (BNDES) and the Research and Project Financing Institute (Finep) to provide financial support to the semiconductor industry. These funds will be used for investments in production infrastructure and automation of production lines, as well as the purchase of domestic or imported machinery and equipment.
Rogerio Nunes, President of the Brazilian Semiconductor Industry Association (Abisemi), announced that it is expected to promote investments of approximately 24.8 billion reais (about 31.2 billion RMB) in Brazil by 2035 for the development of new products, increasing production capacity, and expanding the product portfolio. The new regulation also confirms that Brazil will provide annual funding of up to 7 billion reais (about 8.8 billion RMB) for industries such as chip, solar panel, and electronic product manufacturing.
The implementation of this policy in Brazil will not only promote the development of the semiconductor industry but also stimulate the import and export of goods and services related to semiconductors, enhancing Brazil’s competitiveness on the international stage. At the same time, Brazil is actively seeking international cooperation, particularly in the field of semiconductors with China, to introduce technology and investment, establish semiconductor factories, produce products for the Brazilian market, and enhance local semiconductor manufacturing capabilities through technology transfer.
The strategic move by the Brazilian government provides strong financial support for the domestic semiconductor industry and offers new investment opportunities for Chinese semiconductor companies looking to expand into Brazil. The cooperation between China and Brazil in the field of semiconductors is deepening, with both parties agreeing to establish a working group to promote semiconductor production in South America and signing multiple agreements involving joint research and development of technologies such as 5G communications, the internet, and cybersecurity.
