Government creates group to revert closure of Ceitec, state-owned chip maker

President Luiz Inácio Lula da Silva signed a decree establishing a Working Group that should be responsible for proposing the reversal of the closure and privatization of Ceitec (National Center for Advanced Electronic Technology).

The state-owned company, which was considered the only chip maker in Latin America, began to be liquidated during the term of former President Jair Bolsonaro. Currently, the process of closing the company is still ongoing, but it was stopped by decisions of the Federal Court of Accounts (TCU).

An Inter-Ministerial Working Group is established, within the scope of the Ministry of Science, Technology and Innovation, with the purpose of presenting studies and proposals for the feasibility of reversing the privatization and liquidation of the public company Centro Nacional de Tecnologia Eletrônica Avançada SA – Ceitec and a proposal for participation in promoting semiconductor research and development policy.

The group that is being created should also present a proposal to encourage research and development policy for semiconductors in Brazil. The duration of the work will be 120 days, but the period may be extended if necessary.

Created in 2008, during Lula’s second term, Ceitec became known for producing chips for tracking cattle. However, the public company ended up going into liquidation following the previous government claimed that it was not profitable.

If the state-owned company is reopened, there is still no project that indicates its new role. In any case, the world has been going through a difficult time in the semiconductor market and many countries are looking for ways to attract manufacturers to their territories.

A group of businessmen even worked with the government in an attempt to bring investment to Brazil, but the result of the negotiations was not revealed.

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