Brazil and Malaysia Advance Semiconductor Partnership with Joint Chip Manufacturing Venture

Brazil and Malaysia progress towards a joint semiconductor chip manufacturing venture, reinforcing Brazil's technological sovereignty and leveraging vast rare earth reserves.

    Key details

  • • Brazil and Malaysia plan a joint venture for semiconductor chip production involving Brazilian company Tellescom and Malaysian firms.
  • • The Brazilian government reversed Ceitec's privatization to strengthen technology sovereignty.
  • • Five agreements were signed benefiting Brazilian institutions like Inpe and Eldorado Technological Park.
  • • Brazil holds significant rare earth reserves (~50 million tons) vital for modern technology and is establishing a National Rare Earths Council.

Brazil and Malaysia are moving forward with the establishment of a joint venture aimed at producing semiconductor chips, marking a significant step in bilateral cooperation to bolster Brazil's technological sovereignty and presence in the global semiconductor supply chain. During a ceremony in Malaysia, Brazilian President Luiz Inácio Lula da Silva and Minister of Science, Technology and Innovation Luciana Santos announced the formation of this collaboration between Brazilian company Tellescom and Malaysian firms.

Minister Santos emphasized Brazil's strategic role, highlighting efforts to reverse the previous government's privatization of the National Center for Advanced Electronic Technology (Ceitec) to enhance national control over technological development. The joint venture is still in development, with options including creating a new company or establishing a cooperation agreement between existing corporations.

Among the broader cooperation, five agreements were signed in Malaysia, three under the purview of Minister Santos's ministry, benefiting institutions such as the National Institute for Space Research (Inpe) and the Eldorado Technological Park. The initiative also includes training Brazilian engineers in chip validation technologies focusing on silicon carbide and gallium nitride, critical materials for cutting-edge semiconductors.

Further, Brazil is progressing in establishing a National Rare Earths Council, noting its considerable reserves estimated at 50 million tons, mainly located in Amazonas, Goiás, and Minas Gerais. Santos pointed out the vital role of these rare earth elements in modern technologies like smartphones and batteries and celebrated the successful transfer of a rare earth laboratory in Minas Gerais to Senai, enhancing Brazil’s research capabilities.

This collaboration highlights Brazil's strategic initiatives to assert technological sovereignty and expand its role in advanced semiconductor manufacturing through international partnerships and domestic institutional strengthening.