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Brazil and Malaysia Strengthen Ties in the Semiconductor Industry

Joint Initiatives in IC Design Set for 2024

Brazil and Malaysia are set to collaborate in the semiconductor industry, with plans to develop joint initiatives in integrated circuit (IC) design next year. Sources from the Brazilian Embassy in Malaysia have expressed optimism about this partnership, which was highlighted during a recent Malaysia-Brazil semiconductor industry meeting in Rio de Janeiro. The meeting was attended by Malaysia’s Prime Minister Datuk Seri Anwar Ibrahim as part of his official visit to Brazil.

Malaysia and Brazil’s Semiconductor Landscape

Currently, Malaysia holds the position of the sixth-largest semiconductor exporter globally, with exports surpassing US$85 billion (RM378 billion). In contrast, Brazil’s semiconductor export value was US$1.2 billion as of 2022. Despite this disparity, Brazil has a competitive edge in IC design, a key area of focus for the upcoming collaboration.

“IC design is definitely an area we will focus on, and there have already been initial contacts between stakeholders from both countries to develop joint initiatives,” a source told Bernama.

Agreements Paving the Way for Collaboration

During Anwar’s visit, two significant memorandums of understanding (MOUs) were signed:

  • Mimos Bhd and Brazil’s Eldorado Institute
  • Malaysia Semiconductor Industry Association and Brazilian industry associations

These agreements aim to foster collaboration through joint ventures, research and development projects, and talent development initiatives between institutions and companies in both nations.

Early Discussions and Long-Term Goals

Discussions on Brazil-Malaysia cooperation in the semiconductor sector began in 2023, initiated by the “Brazil-Asean and Semiconductors: Unveiling Global South Synergies” event. This gathering, organized by the Brazilian Embassy, marked the beginning of dialogues between stakeholders from the two countries. Over the past year, Malaysian and Brazilian organizations have maintained active contact, culminating in the agreements signed during Anwar’s visit.

While specific details are yet to be finalized, sources indicate that trust-building will be critical in identifying precise areas for collaboration. “As the collaboration progresses, trust-building remains crucial to identifying specific areas of cooperation,” the sources added.

Malaysia’s Semiconductor Ecosystem

Malaysia’s semiconductor industry boasts global giants such as Intel, Infineon, Micron, and Texas Instruments, alongside homegrown champions like Carsem and Inari. This robust ecosystem positions Malaysia as an attractive partner for Brazil’s emerging semiconductor sector.

Prime Minister’s Successful Visit to Brazil

Prime Minister Anwar’s working visit to Brazil included two key components:

  1. A bilateral meeting with Brazilian President Luiz Inacio Lula Da Silva on November 17, 2024
  2. Participation in the G20 Summit under Brazil’s presidency from November 18-19, 2024

The visit was fruitful, generating an export potential worth RM6.8 billion over the next three to five years. Anwar, who also serves as Malaysia’s Finance Minister, attributed this success to discussions with 58 industry leaders from 28 leading companies and business associations in Brazil.

Strengthening Bilateral Ties

The collaboration in the semiconductor industry marks a significant milestone in strengthening Malaysia-Brazil ties. As joint initiatives take shape, the partnership promises mutual benefits and enhanced growth opportunities for both nations.

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