Text determines investments throughout the production chain to promote greater competitiveness for chips manufactured in the country
The BNDES (Brazilian Development Bank) and FINEP (Study and Project Financing Agency) will be able to finance the development and production of microchips and solar panels. These activities are included in the new Brazil Semiconductor Program (Brasil Semicon), created by the PL (bill) 13th 2020approved by the Senate on Wednesday (August 21, 2024). It will be submitted for approval by President Luiz Inácio Lula da Silva (PT).
The project originated from an initiative by Congressman Captain Alberto Neto (PL-AM). The approved text determines investments throughout the sector’s production chain, aiming to offer greater competitiveness to chips manufactured in the country.
When it was still under analysis at CAE (Economic Affairs Committee)the matter received a favorable opinion from Senator Omar Aziz (PSD-AM). In this report, he highlighted the importance of the information and communication technology (ICT) and semiconductor sectors for the global economy.
“Governments of different countries are investing in measures to reduce dependence on external semiconductor supply chains, considering that this dependence, during the COVID-19 pandemic, resulted in the shutdown of production in several industries, as these are components with applicability in multiple production processes”emphasized Omar Aziz.
Global spending on ICT is estimated to exceed US$5 trillion by 2024. In 2023, of the approximately US$3.2 trillion invested in the sector, only 1.6% (approximately US$50 billion) came to Brazil. Even so, the country is in 10th place globally and in 1st place in Latin America.
Padis
The approved project also extends the validity of Padis (Program to Support Technological Development of the Semiconductor Industry) until 2073. Before this change, the deadline was 2027. The new date, also extended for the Computer Law, coincides with the granting of benefits for the Manaus Free Trade Zone.
The text includes new activities, such as software design for virtual environments, as candidates for tax relief. It also ends the requirement for a prior government list for the acquisition of incentivized inputs.
In the case of financing for companies, the counterpart to investments may be calculated based on the companies’ total revenue, and not just on internal sales, as is currently the case.
Periodic reassessment
Omar Aziz argued that the ICT and semiconductor industries increase national competitiveness, create high value-added jobs and generate income. Therefore, he advocated a periodic reassessment of incentives for the sector in accordance with the LDO (Budget Guidelines Law).
The senator from Amazonas agreed to end the Program to Support Technological Development of the Digital TV Equipment Industry. The program was listed in the Law 11,484 of 2007and involved subsidies that were questioned at the WTO (World Trade Organization) by the European Union and Japan.
With information from Senate Agency.
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