Page 72 - InvestmentGuideBrasilEng

Semiconductors ? 5th-largest mobile phone market; tinue as more Brazilians join the middle class and house and foundry was inaugurated in 2008. The
Steady growth in demand is expected to con-
A public Brazil-based semiconductor design
National Center for Advanced Electronic Technol-
demand for end products which require electrical
? 3rd-largest market for components grows. For the middle class, mobile ogy (CEITEC) presently designs and produces chips
With a young population and emerging middle computers and peripherals; phones are no longer a luxury but a vital tool for to meet local needs, such as an RFID chip to track
class avid for new technology – many of whom communication and personal computers and cattle and a biometric chip for Brazilian passports.
are first-time buyers – the demand for electronic ? 4th-largest market for financial cards; and electronics are increasingly used to further educa- Another important step is the construction of
goods in Brazil’s consumer market is large. Brazil tion. As such, they are a top priority for Brazilian Six Semicondutores. Announced in 2012 and cur-
ranks high in the strongest-performing semicon- ? 7th-largest producer of passenger cars. consumers. rently being implemented, Six Semiconductors
ductor markets, such as: Government investment in national broad- SA (SIX) is the result of a partnership between SIX
Brazil is the leading global growth market in band under the National Broadband Plan (PNBL) is Solucoes Inteligentes, Brazilian Development
terms of per capita consumption and penetration broadening access to the Internet and generating Bank (BNDES), Minas Gerais State Development
of end products: further demand for electronics. According to Euro- Bank (BDMG); IBM; Matec Investimentos; and
monitor, Latin America will generate demand for WS-Intecs. The R$1 billion investment is to build
$147 billion in consumer electronics by 2016, 40% of the most modern semiconductor factory of the
which will come from consumers in Brazil. Southern Hemisphere and will be operational in
BRAZILIAN END PRODUCT CONSUMPTION AND GROWTH COMPARISON leveraged by such strong demand to create 2014. Another important investment has been
In order to seize upon this opportunity
made by a joint-venture between South Korean
wealth and jobs and contribute to Brazilian eco- company Hana Micron and the Brazilian holding
BRAZIL RUSSIA INDIA CHINA MEXICO INDONESIA nomic development, the Brazilian government company Parit Participacoes. HT Micron is already
PER CAPITA CONSUMPTION has identified semiconductors as a priority sector operational inside Tecnosinos, with the production
OF CONSUMER ELECTRONICS 208.4 150.9 21.3 88.6 79.2 56.0 for attracting investment. To encourage business of SmartChips and DRAM memories. Its perma-
2011 US$
in the semiconductors sector, the federal govern- nent headquarter will be completed by end of 2013,
MOBILE PHONE DEVICES ment has adopted several initiatives, including: with approximately 10,000 m² of buildings with
RETAIL VOLUME 2011 56.2 40.5 202.4 243.8 27.4 35.0
(MILLION UNITS) expanded capacity both in volume and products.
? Tax incentives and lower tax rates for Also present on the Brazilian market in the
TV RETAIL VOLUME 2011 12.2 7.4 15 47.8 2.3 4.3 manufacturers producing consumer goods electronics sector are: Dell, Epson, Google, HP, LG,
(MILLION UNITS) such as mobile phones, tablets and related MABE, Lenovo, Microsoft, Motorola, Panasonic,
products (which can be produced in the Manaus Philips, Samsung, Sony, Toshiba and Whirlpool,
VEHICLE PRODUCTION 2011 3.4 1.9 3.9 18.4 2.7 0.8
(MILLION UNITS) Free Zone, benefiting from further incentives), among others.
FORECAST GROWTH OF in exchange for a minimum investment of 5%
MOBILE PHONE DEVICES 2011- 9.8 2.3 13.1 7.2 0.1 7.8 of the revenue coming from such products in
2016 (CAGR %) research and development activities in Brazil.
POSSESSION OF BROADBAND 32.1 33.8 4.9 29.6 22.1 2.4
2011 (% OF POPULATION) ? Specific incentives oriented towards
GROWTH IN POSSESSION manufacturers of semiconductor electronic
OF BROADBAND 2011-2016 21.5 27.8 4.3 16.6 18.0 2.0 devices, liquid crystal and plasma displays
(CAGR %)
and on-board chip systems under the
POSSESSION OF PERSONAL
COMPUTER 45.4 57.1 8.6 38 31.9 12.0 Brazilian Program to the Development of the
(% OF POPULATION) Semiconductor and Display Industry, or “PADIS,”
GROWTH POSSESSION OF as it’s known in Portuguese. PADIS suspends a
PERSONAL COMPUTER 2011- 15.5 30.5 18.4 7.1 9.1 16.2 number of taxes in the sector, including import
2016 (CAGR %) taxes on machinery or raw materials necessary
for production. A minimum investment of 5% of
Source: Euromonitor, International Organization of Automobile Manufacturers (OICA) revenue in research and development is required.

? Other industrial development policies in
force, such as professional training for IC
designers and engineers, are also supportive.
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