Qualcomm and Investe SP enter into agreement at Palácio dos Bandeirantes for a chip plant

Project assisted by Investe SP involves joint venture with ASE for a US$ 200 million project to develop 5G and IoT technology

In March, Governor Geraldo Alckmin welcomed executives of Qualcomm Incorporated and Advanced Semiconductor Engineering (ASE) at his office, for the execution of a Memorandum of Understanding between the companies and Investe São Paulo.

The agreement reinforces the support that the investment promotion agency will provide to allow the two companies to build, through a joint venture, a semiconductor factory in São Paulo, investing US$ 200 million (R$ 600 million).

The project is focused on smartphones and applications related to the internet of things, a technology that allows objects such as appliances to interact through the internet. 

“This project places Brazil in the new technological revolution, which is the industry 4.0 and the internet of things. It is an important innovation, with investments that will create jobs and encourage a whole production chain in the state of São Paulo,” says Alckmin.

“It will be the first high density semiconductor plant in Latin America. It is a huge step forward that will put Brazil and São Paulo in contact with the latest technology worldwide, helping to bring the 5G mainly through research and development for the launch of chips with the new transmission technology. The idea is revolutionary: we are entering a future where everyday objects such as refrigerators and curtains will be controlled by the mobile phone. And of course São Paulo will be at the forefront of this development,” said the vice governor and Secretary of Economic Development, Science, Technology and Innovation of the State of São Paulo.

The joint venture between Qualcomm, ASE and USI will be formed after the completion of bureaucratic procedures at the federal and state government levels. It is expected to occur in four months. After that, the plant will be installed in warehouse in Campinas. In 14 months, the unit should be producing the first high density semiconductors in Latin America, in addition to encouraging the formation of a local supply chain.

“Our team is in the process of gathering strategic information in a joint effort to find a suitable location for a possible manufacturing plant in case the joint venture is formed. We believe that the quality of the infrastructure and human capital of the state of São Paulo allow it to be the center of the technology production chain in Latin America,” said Ermínio Lucci, director of Investe São Paulo.

“Over the past 30 years, the products and technologies of Qualcomm Technologies have created, assisted and helped accelerate the mobile industry,” said Cristiano Amon, Executive Vice President of Qualcomm Technologies, Inc. and president of QCT. “Since mobile devices continue to generate a positive impact on society, we look forward to supporting the semiconductor industry in Brazil, fulfilling the promise of connecting mobile devices around us at all times.”

“We hope that the transactions contemplated in this Memorandum of Understanding, after analysis and approval, are able to strengthen the participation of Brazil in the semiconductor value chain, and in particular meet the local ecosystem of smartphones and develop the ecosystem of the Internet of Things,” said Rafael Steinhauser, senior vice president and president of Qualcomm Latin America.

“As the leading provider of assembly and testing services for integrated circuits in the world, we are excited about the opportunity to expand our presence in Brazil, and create value for the Brazilian high-tech industry through the development and manufacturing of our advanced SIP technology,” said Dr. Tien Wu, COO of ASE. Today, Brazil imports 100% of high-density semiconductors manufactured in the USA, Germany, France, Korea, Israel and China.

Partnerships

On Wednesday afternoon, executives of both companies also attended the President’s office. There, they signed a Memorandum of Understanding with the Ministry of Science, Technology, Innovation and Communications (MCTIC), the Ministry of Industry, Trade and Services (MDIC), the National Bank for Economic and Social Development (BNDES), BNDES Participações S.A. (BNDESPAR) and Investe SP.

The document acknowledges that the technical, commercial and financial viability of the growth of the semiconductor value chain in Brazil requires a joint and coordinated effort of all parties to meet the various legal and business conditions.

About Qualcomm

Qualcomm’s technologies powered the smartphone revolution and connected billions of people. We pioneered 3G and 4G – and now we are leading the way to 5G and a new era of intelligent, connected devices. Our products are revolutionizing industries, including automotive, computing, IoT, healthcare and data center, and are allowing millions of devices to connect with each other in ways never before imagined. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, all of our engineering, research and development functions, and all of our products and services businesses, including, our QCT semiconductor business. To learn more, visit Qualcomm’s website, blog, Twitter and Facebook pages.

About ASE Group

The ASE Group is among the world’s largest providers of independent semiconductor manufacturing services in assembly, test, materials and design manufacturing. As a global leader geared towards meeting the industry’s ever growing needs for faster, smaller and higher performance chips, the Group develops and offers a wide portfolio of technology and solutions including IC test program design, front-end engineering test, wafer probe, wafer bump, substrate design and supply, wafer level package, flip chip, system-in-package, final test and electronic manufacturing services through Universal Scientific Industrial Co., Ltd. and its subsidiaries, members of the ASE Group. For more information about the ASE Group, visit www.aseglobal.com.

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