Previously invisible assets, semiconductors are gaining strategic importance in Brazil as industry, defense, and artificial intelligence become directly dependent on this technological chain.
Semiconductors in Brazil are no longer a topic restricted to electronic engineering. Today it is a matter of industrial competitiveness and technological sovereignty.
They support sectors such as artificial intelligence, telecommunications, mobility, defense, and aerospace . How a country positions itself in this chain directly influences its ability to attract highly complex industries.
What are semiconductors and why are they so important?
Semiconductors These are materials, such as silicon, whose electrical conductivity can be controlled.
They are used in the manufacture of electronic components, integrated circuits and chips. Without them, no modern digital system works.
From chips to technological systems
An isolated semiconductor is simply a material with specific electrical properties.
The production of a chip involves several stages, including circuit design, fabrication of the device using semiconductor material, packaging, and testing.
This transformation, from raw material to functional system, is what makes the semiconductor supply chain so complex and globally competitive.
Why have semiconductors become strategic assets?
Chips are no longer just industrial inputs. Governments around the world have begun to treat them as technological and economic security assets.
The global semiconductor market closed 2025 with record revenue of US$791,7 billion, a 25,6% increase compared to 2024 , according to the Semiconductor Industry Association (SIA) , with projections reaching US$1 trillion in 2026, driven primarily by artificial intelligence infrastructure.
This volume explains why countries like Brazil have begun to treat the sector as a priority in industrial policy.
Where are semiconductors used?
Semiconductors are present in virtually all of contemporary technology:
- Computers and smartphones — processors, memory, and controllers.
- Vehicles — sensors and battery management systems.
- Telecommunications — mobile network infrastructure, including 5G.
- Artificial intelligence — massive processing chips.
- Industrial automation — sensors and controllers for Industry 4.0.
- Aerospace and defense — highly reliable embedded systems.
- Medical equipment — diagnosis, monitoring and telemedicine.
This wide range of applications is why no country that intends to attract advanced industry can ignore the discussion about semiconductors , even without manufacturing them locally.
How is the semiconductor industry doing in Brazil?
The country participates in the global supply chain mainly in less complex links, such as design, packaging, and testing, while more than 85% of semiconductors consumed domestically are imported , according to a text from the Ministry of Science, Technology and Innovation (MCTI) , published in Revista Paraná.
To reduce this dependence, the federal government enacted the Brazil Semiconductor Program Law (Brasil Semicon) in 2024 , which updates the old PADIS program from 2007 and was regulated by decree in 2026.
The policy provides incentives of R$ 7 billion per year and is part of Mission 4 of the New Industry Brazil program, with combined sectoral investment, public and private, estimated at R$ 186,6 billion by 2035.
How does the semiconductor array work?
The semiconductor supply chain is divided into highly specialized stages. No single country dominates all of them , not even the global leaders.
Research and Development
Generating scientific knowledge applied to new materials, chip architectures, and manufacturing processes. It is the foundation of the entire subsequent chain.
Chip design
This is the stage where engineers design the architecture and function of the semiconductor. Brazil already has companies active in this area, such as Chipus and EnSilica.
Manufacturing (front-end)
Physical production of semiconductors in highly specialized factories. Requires investments between US$2 billion and US$10 billion.
Manufacturing is concentrated primarily in East Asia, especially in Taiwan, South Korea, China, and Japan , as well as the United States and European countries.
Encapsulation and testing (back-end)
This is the phase in which the chips are encapsulated, tested, and prepared for commercial use. It is the link in which Brazil has the most consolidated presence , with companies such as HT Micron, Zilia Technologies, Multilaser, and CalComp.
Why is developing semiconductors a technological challenge?
Capital and infrastructure
A state-of-the-art factory can require between US$2 billion and US$10 billion , in addition to highly precise energy and logistics infrastructure.
Specialized engineering
It depends on engineers trained in microelectronics, materials physics, and computer science. Talents that are scarce even in developed economies.
Research and intellectual property
Each generation of chips relies on intellectual property accumulated over decades of research. Latecomer countries need to continuously invest in R&D.
Scale and international integration
No country operates in isolation in this industry. Even technological powerhouses depend on international suppliers at some point in the chain.
What is the relationship between semiconductors and Industry 4.0?
Semiconductors are the physical component that enables Industry 4.0.
Sensors, controllers, and embedded systems depend directly on chips to function. The logic is straightforward:
- Sensors → connected machines → automation → data → artificial intelligence → advanced manufacturing.
Without a solid semiconductor foundation, industrial digitization loses part of its critical infrastructure.
Why are innovation ecosystems important for high-tech industries?
Talent training
Engineers specializing in microelectronics, automation, and embedded systems are the scarcest and most crucial resource for any long-term technological strategy.
Universities and research
Educational institutions train qualified professionals and generate the scientific knowledge that supports applied innovation.
Companies and technological development
Companies specializing in design, engineering, and advanced manufacturing transform science into commercial products, closing the loop between research and the market.
The connection between knowledge and the market.
Technology parks, incubators, and accelerator programs connect academic research to real-world industrial applications.
Benefits of tracking the semiconductor supply chain for companies and investors.
Understanding Brazil's position in this supply chain offers concrete advantages for those considering operating in the country:
- Identify where the country has real competitiveness. (design, back-end, research) and where it doesn't yet exist (front-end).
- monitor tax incentives and regulatory changes from the Brazil Semicon Program before the bidding process.
- Mapping engineering and research ecosystems capable of supporting critical technology operations, even outside of chip manufacturing.
- Reduce decision risk. Base investment decisions on verifiable data, not on industrial policy promises.
Where does São José dos Campos fit into this discussion?
It's important to be precise: São José dos Campos is not currently a semiconductor manufacturing hub . There is no evidence to support this claim.
What the city brings together is a set of high-tech ecosystem skills, such as engineering, applied research, advanced industry, and talent development . These are precisely the pillars needed for strategic technology industries, including the semiconductor supply chain.
This ecosystem is one of the reasons why investing in São José dos Campos is highly valued by technology and engineering companies. The city is part of one of the most important axes of Brazil's industrial hub , with a mature production chain in high-tech sectors.
Engineering, research and highly complex industry in São José dos Campos
Technological training and ITA
The Technological Institute of Aeronautics (ITA) is a national benchmark in precision engineering. It trains professionals in embedded systems and applied electronics, skills linked to the semiconductor industry.
Research and scientific institutions
INPE, DCTA, and IEAv reinforce the city's scientific density in critical technology, sensors, and advanced materials.
Aerospace industry and advanced engineering
The aerospace industry established in the city demands the same type of technical precision associated with semiconductors, in another productive segment.
Learn more: São José dos Campos Aerospace Hub: Innovation, Engineering, and Technology in Brazil
Technological Innovation Park
The São José dos Campos Technological Innovation Park brings together companies and startups in IoT, automation, and artificial intelligence, areas directly connected to the demand for semiconductors.
The diversity of international operations in the city is another relevant indicator.
See more: Why do multinational companies choose São José dos Campos to operate in Brazil?
Why do strategic technologies matter for attracting investment?
Higher value-added chains
Semiconductors, aerospace, and defense are knowledge-intensive sectors and can generate higher value-added production chains.
Talent training
High-quality technical and scientific education institutions reduce one of the main obstacles for technology companies: the availability of qualified labor.
research and innovation
Ecosystems with active research centers can facilitate the development and application of new technologies and their arrival on the market.
Technological competitiveness
Cities capable of supporting highly complex industries, even without producing all links in the chain, are better positioned in the competition for international investments. This logic underpins São José dos Campos' position as an innovative city in Latin America.
Semiconductors in Brazil and the investor's next step.
Brazil is still at the beginning of its journey in the global semiconductor supply chain. But it is already directing industrial policy, capital, and research toward reducing external dependence.
For investors and technology companies, understanding this chain means understanding where the regions capable of supporting advanced engineering, research, and industry are located in the country.
Explore the innovation and high-tech ecosystem of São José dos Campos and discover the conditions the city offers for technology, engineering, and advanced industry companies.
Speak with the Invest SJC team and evaluate the next step for your investment.
FAQ – Frequently Asked Questions about Semiconductors in Brazil
Semiconductors are materials, such as silicon, used in the manufacture of fundamental electronic components for chips, sensors, and technological systems.
Brazil participates mainly in the design, packaging, and testing stages, with companies such as Chipus, EnSilica, HT Micron, and Zilia Technologies. The manufacturing of cutting-edge ( front-end ) chips is still limited: Ceitec, in Porto Alegre, is the only front-end factory in South America.
Ceitec is a Brazilian federal public company focused on the development and manufacturing of semiconductor devices. Created in 2008 and headquartered in Porto Alegre, Ceitec originally had the capacity to manufacture 350-nanometer semiconductors.
They are essential for telecommunications, industry, artificial intelligence, vehicles, defense, aerospace, and electronic equipment, pillars of any long-term technological development strategy.
Chips and electronic components are present in sensors, equipment, and connected machines—the physical infrastructure that supports industrial digitization.
No. The city brings together highly complex engineering, research, and industrial expertise, such as ITA, INPE, DCTA, and the Technological Innovation Park, which are relevant to the discussion, without this necessarily implying local production of the component.
