Semiconductor Investment Attraction Case

Policies for Investment WorkshopVienna, June 2011

APEX-BRASILThe best of Brazil to the worldExport promotion of Brazilian products and services (2003)Promotion Brasil brand abroad (2003)Foreign direct investment attraction (2005) – Partnership with FIAS (2009)Support to internationalization of Brazilian enterprises (2011)

FIAS – Apex-Brasil PARTNERSHIP SCOPE

CAPACITY BUILDING

Apex-Brasil IP STRATEGIC PLANNING

ENABLING Apex-Brasil TEAM IN WHOLE IP CYCLE

SETTING UP A NATIONAL AND STATE LEVEL IP COORDINATION

DIRECTLY WORKING WITH FRONTIER STATES TO PROACTIVELY ATTRACT INVESTMENTS IN SECTORS SUCH AS

RENEWABLE ENERGY

SEMICONDUCTORS A CHALLENGING BACKGROUND

BRAZIL IC TRADE DEFICITS = US$ 5 BILLION (2010)

INDUSTRY TRENDS

COST DRIVEN & CAPITAL INTENSIVE

- Global sourcing = Global clients

Caused by an IC domestic market demand of US$ 10 billion (onboard + raw)

Disintegration and diversificationFabless model riseSubcontractor dominate the packaging process Sales & Customer

Support

Test & burn inPackaging Process

Back-end Wafer Process Front-

end Design, IP, Software

2007 – 2009 crisis >>> investment cut

No regional links – global logistics

IDMFabLess Design House Foundry Subcontractor

Design, IP, Software

SEMICONDUCTORS GOVERNMENT RESPONSE

- 2005: SEMICONDUCTOR INTERMINISTERIAL GROUP UNDER PRODUCTIVE DEVELOPMENT POLICY

Develop local manufacturing capacity

- 2010: Foreign governments partnership

HDTV partnership with Japan >>> feasibility study

- 2007: CREATED R,D&I PROMOTION POLICYHR development support and investment incentives

- 2009: Seed investment in manufacturing (eco-system buildup)

Small scale front-end facility

SEMICONDUCTORS TRANSITION TO INVESTMENT ATTRACTION

WHEN Apex-Brasil BECAME MEMBER, THE GROUP…

…WAS GOVERNMENT & ACADEMY CENTRIC…

…DOING EVENTS DRIVEN PROMOTIONAL ACTIVITIES…

…LACKING STRONG LINKS WITH PRIVATE SECTOR…

…AND APPLYING AN INDUSTRY-WIDE APPROACH

SINCE THEN Apex-Brasil ROLE HAS BEEN…

…CAREFULLY PROPOSING A MORE SYSTEMATIC APPROACH…

…TOWARD BUILDING UP A SEGMENTED VALUE PROPOSITION…

…INVESTORS IDENTIFICATION & PROFILING…

…CARRYING OUT STRUCTURED CAMPAIGNS

SEMICONDUCTORS UNDER WAY WORK…RESULTS SHOWING UP

3 regional road-shows (individual meetings) targeting 19 companies

Chip design pre-existent cluster

…WHERE RESULTS ARE REINFORCING THE STRATEGY

Easier attractiveness improvingSegment requiring smaller investment

High profile jobs creation

4 companies made site visits

1 new investment & 1 expansion resulting +150 chip designer jobs

RE-FOCUSING TO A SEGMENT QUICK WINS…

8 leads generated

SEMICONDUCTORS

CHALLENGING PATHS AHEAD

e.g. applying a certain differentiation to imported chip designed in Brazil (within WTO rules)

ENHANCING CHIP DESIGN VALUE PROPOSITION COMPETITIVENESS

EVOLVING TO IC MANUFACTURING SEGMENT ATTRACTION

Strengthening partnership with:- Government administration;- Legislators and- Private sector players

toward a more competitive investment climate

Thank you

paulo.moraes@apexbrasil.com.br