The chip war, a technological and trade dispute between the US and China for dominance in the semiconductor market, has reached Brazil. The Americans have repeatedly signaled to the Lula government that they want to integrate the country into its production chain.
Chips are the heart of today's industry. The lack of them during the pandemic has led to the shutdown of car factories, and they are vital for strategic sectors, from cell phones to artificial intelligence used for military purposes.
The American suggestion includes bringing companies to handle production in Brazil, supported by a new law approved to reduce dependence on Asian countries – Taiwan and South Korea are leaders in more advanced semiconductors.
Since last year, the US has made it difficult for the Chinese to access chips of this type, which Beijing does not yet manufacture.
The Chinese, in turn, are expected to offer Brazil a partnership in the field during Lula's visit to the country at the end of the month.
Translated by Cassy Dias