By Robert Young
Market Access Analyst
When Covid-19 hit in 2020, Brazil was not far removed from its own political and economic crises. The economic knockout from problems with the supply of semiconductors, both due to the pandemic and the war in Central Asia, has undoubtedly affected the growth of the 5G networks and automobile industry here in Brazil. While these challenges have been a significant speed bump in Brazil's recovery, they have not prevented the country from moving forward and laying the groundwork for a new and exciting future in the world of high technology and the development of the semiconductor industry.
Here are some insights into this growing segment:
● Brazil’s IT market ranks 12th globally, at an estimated $US 45.2 billion in 2022.1
● The sector earns more than R$3 billion annually in Brazil and generates more than 2,500 qualified jobs, according to data from the Brazilian Semiconductor Industry Association (ABISEMI). Investments in manufacturing infrastructure were around US$2.5 billion, and more than US$100 million in RD&I. 2
● The PADIS Program was established in Brazil back in 2007 to offer tax incentives to the semiconductor industry. While it has been successful, the program is still facing challenges due to the shortage of semiconductors in Brazil. This issue has arisen due to problems in achieving self-sufficiency in domestic production. To overcome these challenges, there is a need for advocacy and policies that can help boost local manufacturing.
Brazil has faced some challenges getting the semiconductor industry on its feet, but things are looking up:
● Ceitec, the state-owned and leading semiconductor factory in Brazil, was closed down in 2020 and was set to be completely broken up and sold. In November 2023, Ceitec was given a second chance and has returned to operations in its home of Porto Alegre in the South of Brazil.
● In January of 2024, Brazil launched the New Industrial Policy, which plans on investing R$ 300 billion (approximately USD 60 billion) into social and economic development. Roughly USD 425 million will be set aside for the semiconductor industry. 3
● Brazil's renewable energy sector is one of the best on earth. The electrical matrix is one of the cleanest on earth, and plans are to invest over USD 100 billion by 2029. This could be very positive for the semiconductor industry. 4
Are you considering investing in an emerging market? Look no further than Brazil's technology industry. The dynamic and rapidly growing market is supercharging the country's economy. With a robust education system providing R&D support, the potential for success is endless.
Robert C. Young is a market entry analyst at Sidera Consult with over 25 years of experience working with global cultures in a wide range of business and communication topics.
Sidera Consult's experienced team has a proven track record of developing new markets in both Brazil's private and public sectors. Don't miss out on this exciting investment opportunity - join the thriving technology industry in Brazil today.
Learn more about Sidera Consult at: https://www.sideraconsult.com/
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