1660903883 Brazil and South Korea sign an agreement on Samsungs semiconductor

Brazil and South Korea sign an agreement on Samsung’s semiconductor production in the country Ground Forces Ground Forces

Brazil and South Korea sign deals to build semiconductor chip factory in partnership with Samsung.

The governments of Brazil and South Korea signed an agreement to jointly build a semiconductor factory to be built in Brazil. Negotiations with the Asian country revolve around Samsung, one of the world leaders in the industry. The information was shared by Fábio Faria, Minister of Communications, in an interview with the press during the 5G.BR seminar organized by the entity itself.

A deal with South Korea could bring a semiconductor factory to Brazil

According to Faria, there is a memorandum of understanding with the South Korean government and negotiations are ongoing with Samsung about the possibility of building a factory in Brazil. The idea would be to build an industry capable of producing parts that can supply local industry, mainly automotive, and export to countries in Latin America, Africa and Europe. According to Faria, Brazil is a strategic point for the new Samsung factory.

If confirmed, construction of the industrial facility in partnership with South Korea would be the responsibility of the private sector, with the state where the unit would be installed offering potential tax benefits. However, there is nothing concrete at the moment.

The minister commented that the semiconductor market is heavily dependent on production in Taiwan, which is currently going through a period of geopolitical tensions with disputes between China and the United States, fueling the demand to seek alternatives to ensure wholesale supplies .

lack of semiconductors

However, the problem is not new and it is a gap in the market that has been dragging on for several months in the face of the global crisis caused by the COVID19 pandemic and the war in Eastern Europe, factors that have affected the chain logistics worldwide.

The introduction of fifthgeneration mobile internet (5G) will also open the market for the socalled IoT (Internet of Things), ie communication between devices, which will increase the demand for semiconductors in the coming years.

Faria says he also sought dialogue with Intel to set up a semiconductor factory in Brazil. According to the communications minister, the company replied that it had approached the Brazilian government a few years ago, but could not reach an agreement. So, in mid2008, Intel set up its factory in Costa Rica.

Ceitec liquidation

Brazil and South Korea sign an agreement on Samsungs semiconductor

Despite the outbreak of the semiconductor supply crisis, Jair Bolsonaro’s government decided to disband the Center of Excellence in Advanced Electronic Technology (Ceitec), a stateowned company that was the only maker of chips and semiconductors in Latin America.

Headquartered in Porto Alegre, Ceitec was established by law in 2008, while the government of former President Luiz Inácio Lula da Silva was still in power. The intention would be to have a large national manufacturer in this sector. The problem is that the company has always been dependent on the state treasury, which means it has required investments from the public purse to cover current expenses and salaries.

With no profit and also seen as inefficient, Ceitec became a target of the current government, which published an extensive list of privatizations. Last year, the Investment Partnerships Program (PPI) recommended deleting the stateowned company, and the presidential decree making the decision official was published in December 2021.

SOURCE: clickpetroleoegas.com.br