The reversal of semiconductor production in the world is, without a doubt, a complex and multifaceted issue that covers several dimensions, including geopolitical, economic, technological and environmental aspects.
These components are fundamental to the global economy, given their essential application in a wide range of products, ranging from mobile devices and computers to vehicles and industrial equipment. Understanding these aspects is crucial to analyze the current and future scenario of semiconductor production.
Historically, semiconductor production has been concentrated in a few countries, notably the United States, South Korea, Japan and Taiwan. Recently, China has been making massive investments to establish itself as a powerhouse in the manufacturing of these components.
However, the COVID-19 pandemic has revealed significant vulnerabilities in the global supply chain, causing shortages across sectors ranging from consumer electronics to the automobile industry. This situation highlighted the need for a reassessment of production and supply strategies.
The attempt to reverse semiconductor production, seeking its decentralization and regionalization, aims to mitigate the risks associated with dependence on a few countries. This involves building new factories in strategic locations around the world, including significant investments in the United States and Europe.
This strategy aims to avoid supply bottlenecks and strengthen the resilience of the global supply chain.
There was a significant response from several governments, which announced substantial plans and investments to increase semiconductor production capacity within their territories.
In the United States, the CHIPS Act represents an effort to revitalize the domestic semiconductor industry through billions in subsidies and tax incentives. Similarly, the European Union introduced the European Chips Act, aiming to double its share of global semiconductor production by 2030.
The turnaround in semiconductor production is not without challenges, which include the high costs and technical complexity of establishing and operating state-of-the-art factories, the need for a highly qualified workforce and environmental concerns regarding water consumption and energy.
Despite this, the current situation offers significant opportunities to diversify the supply chain, promote technological innovation, and strengthen economic and national security.
In the Brazilian context, the response to the challenges posed by the new global dynamics of semiconductor production has been insufficient. The federal, state and municipal levels of the Brazilian government demonstrate a notable lack of preparation to face these changes.
The decision by President Luiz Inácio Lula da Silva’s government to reactivate Ceitec, a state-owned company marked by losses and inefficiencies since its creation in 2008, raises serious questions about Brazil’s approach to the technology and innovation sector.
Pejoratively nicknamed the “ox chip factory” due to its commercial errors and disastrous financial results, Ceitec absorbed around R$790 million in investments, but generated a negligible return of R$64.2 million, demonstrating questionable management and a regrettable economic performance.
After a failed liquidation attempt during the Bolsonaro government, which was interrupted by legal obstacles, the current government chose to reactivate a company whose history suggests a profound disconnect with market dynamics and technological innovation.
Reversing the liquidation of Ceitec and planning to hire new employees, although it may seem like a step towards valuing the national semiconductor industry, in fact, it reflects a nostalgic vision that ignores the lessons of its problematic past. At a time when Brazil faces significant economic and technological challenges, the insistence on reviving a notoriously ineffective state-owned company highlights a misguided strategy.
Reliance on a single state-owned company, especially one with such a troubled history, is a limited plan that does not match the complexity and scale of the global challenges in the semiconductor industry.
Technological innovation and economic development require more comprehensive and integrated approaches that include partnerships with the private sector, investments in research and development, and a cohesive industrial policy that goes beyond resuscitating loss-making entities.
The reactivation of Ceitec, therefore, seems less like a strategic solution and more like a setback, a move that raises doubts about the government’s ability to lead the country towards a promising technological future.
The absence of robust public policies, tax incentives and specialized labor training programs places Brazil in a vulnerable position, threatening the competitiveness of its industrial park.
Every month without the creation of effective strategies, the possibilities of scrapping Brazilian industrial parks increase, exacerbated by the loss of productivity due to the high prices of capital goods.
The situation demands urgent and coordinated government action to avoid an even greater delay in the global technological race, ensuring a more stable and prosperous economic future for Brazil.
References:
COSTA, FL da. Impacts of the regionalization of semiconductor production on the global economy. São Paulo: Ed. University of São Paulo, 2022.
SILVA, AR da. Decentralization of semiconductor production: challenges and opportunities. Rio de Janeiro: Ed. PUC-Rio, 2021.
MILLER, Chris. The chip war: The battle for the technology that moves the world. Translated by Roberto W. Nóbrega. 1st ed. Rio de Janeiro: Globo Livros, 2023. 480 p. ISBN 978-655987093.
POWER360. Lula’s government wants to reactivate a state-owned company known for only causing losses. Available in:https://www.poder360.com.br/tecnologia/governo-lula-quer-reativar-estatal-conhecida-por-so-dar-prejuizo/>. Accessed on: 06 Mar. 2024.