The semiconductor industry is the backbone of the modern economy. Found in everything from smartphones to medical equipment and automobiles, semiconductors are essential to the functioning of today’s world. As global demand rises and supply chains shift, Brazil has a unique opportunity to expand its presence in this strategic sector. But is the country ready to play a more significant role in semiconductor manufacturing and innovation?
Semiconductor production consists of three main stages: design (chip development), fabrication (the process of manufacturing circuits on silicon wafers), and packaging/testing (where chips are assembled into final products—integrated circuits—and tested before commercialization). Brazil already has a strong foothold in packaging and testing, a stage that requires advanced engineering to evaluate chip functionality in real-world applications across industries such as IT, telecommunications, automotive, healthcare, and manufacturing.
This segment of the supply chain represents approximately $60 billion annually in the semiconductor market, accounting for about 12% of the global sector—excluding investments by major manufacturers that handle this phase in-house. Over the past few years, Brazilian companies have invested more than $2.5 billion in packaging and testing, demonstrating the country’s installed capacity and expertise for further expansion.
The current geopolitical landscape favors the decentralization of semiconductor production, reducing reliance on Asia. Brazil, with no trade restrictions with major players like the United States and China, is in a strong position to attract investment and further integrate into the global market. However, to seize this opportunity, a stable regulatory environment and long-term financial incentives are crucial.
The Brasil Semicon Program and the Road to 2025
One of the most significant advances for the national industry is the Brasil Semicon Program, launched in September 2024 under Law 14,968/24, signed by President Luiz Inácio Lula da Silva. With this new legislation, the Brazilian Semiconductor Industry Association (Abisemi) announced R$24.8 billion in investments aimed at R&D, production capacity expansion, and factory development through 2035. This initiative is a key step toward integrating Brazil into the international semiconductor market, with expectations of exporting “Made in Brazil” chips to strategic markets like the United States and Europe.
The law also updates and expands the Semiconductor Industry Technological Development Support Program (Padis), marking a turning point for the sector. In addition to extending incentives until 2029—with the possibility of an extension until 2073, pending congressional approval—the legislation will inject R$7 billion annually into the national semiconductor ecosystem. This funding will support the manufacturing of chips, solar panels, and electronic devices, helping to lower production costs, attract foreign investment, and position Brazil within global high-tech supply chains.
These initiatives align with Mission 4 of the Nova Indústria Brasil (NIB) program, which aims to accelerate the country’s digital transformation, encompassing chip and robotics manufacturing, data center development, infrastructure expansion, and e-mobility. Strengthening Brazil’s semiconductor industry is a crucial step toward positioning the country as a global player in the era of innovation and advanced technology.
Zilia and the Growth of the National Industry
Within this context, Zilia Technologies, one of Brazil’s leading semiconductor component and memory device manufacturers, announced in 2024 an investment of R$650 million in Brazil through the end of 2025. This investment underscores Zilia’s commitment to expanding production capacity, diversifying its product portfolio, and exploring new markets, including exports.
Of this total, R$475 million is being allocated to modernizing production facilities in Atibaia (SP) and Manaus (AM). These sites will receive new equipment and machinery for integrated circuit packaging and testing, along with assembly lines for semiconductor-based electronic devices. In Atibaia, Zilia has already expanded its industrial footprint by 1,500 m², adding a new production line focused on advanced technologies.
The remaining R$175 million is being invested in research, development, and innovation (R&D), focusing on new product development, industrial process optimization, and workforce training. Upcoming product launches include DDR5 and LPDDR5 memory components, uMCP, UFS 4.0, NAND Flash, and next-generation memory modules and SSDs.
For Rogério Nunes, CEO of Zilia and President of Abisemi, government support through the new Padis and the Brasil Semicon program has been instrumental in driving sustainable sector growth.
“Semiconductors are the foundation of all modern technology. Government support is key to increasing the competitiveness of our industry, fostering long-term partnerships, and securing Brazil’s place in the global chip market.” – Rogério Nunes
Despite Brazil’s competitive advantages, one of the major challenges facing the industry is the shortage of skilled professionals. The global semiconductor sector already has a talent gap exceeding 250,000 positions, and Brazil is no exception. Currently, only about 500 chip designers are working in the country—far below what’s needed to build a strong semiconductor ecosystem.
To bridge this gap, Brazil must expand training programs and incentivize the education of engineers, physicists, and computer scientists specializing in semiconductors. Institutions like USP, Unicamp, and the Eldorado Research Institute are already developing cutting-edge projects in the field. Other leading universities and research institutes are also advancing semiconductor research and talent development. Strengthening these initiatives and fostering collaborations between universities, companies, and the government will be essential for accelerating Brazil’s workforce development in this sector.
Sustainability, Innovation, and Geopolitics: Brazil’s Strategic Advantages
Semiconductor manufacturing requires significant water and energy resources, raising concerns about environmental sustainability. Brazil, with its predominantly renewable energy matrix and abundant natural resources, is well-positioned to become a hub for sustainable semiconductor production. Emerging technologies, such as silicon carbide (SiC) chips, which lower energy consumption and are critical for electric vehicles and data centers, present a promising avenue for the Brazilian industry.
Brazil does not need to aim for full self-sufficiency in semiconductor manufacturing—even the United States and Europe have not achieved that. The most viable strategy is to deepen Brazil’s integration into the global supply chain, leveraging existing expertise in packaging and testing while expanding its capabilities in chip design and wafer fabrication.
With strategic investments, long-term incentives, and workforce development, Brazil has the potential to strengthen its industrial base and become a key player in the evolving global semiconductor landscape. Beyond infrastructure and sustainability, the country holds a crucial geopolitical advantage: its neutral stance in trade disputes between China, the United States, and Europe. This neutrality allows Brazil to attract investments from multiple global players, increasing its influence in the semiconductor supply chain.
Brazil stands at a pivotal moment—leveraging this strategic opportunity could solidify its role as a key player in the global semiconductor industry.
