Brazil and Malaysia to establish joint chip manufacturing enterprise

Addis Ababa, October 29, 2025 (FMC) – Brazil and Malaysia have agreed to establish a joint venture for semiconductor production. The announcement was made by Brazil’s Minister of Science, Technology and Innovation, Luciana Santos, in an exclusive interview with Brasil de Fato.

The enterprise will specialise in producing microchips for electric vehicles and equipment related to the transition to clean energy. As the minister noted, this initiative will help Brazil strengthen its national industry and take on a more prominent role in the global semiconductor supply chain.

The agreement was concluded during the visit of President Luiz Inacio Lula da Silva of Brazil to Malaysia. Five documents on cooperation in science and technology were also signed during the visit. Three of them – in the fields of space, digital transformation, and bioeconomy – are overseen by Brazil’s Ministry of Science.

At the same time, the republic is developing its own semiconductor industry. The Brazilian government has revived operations at the country’s only chip manufacturing facility, TV BRICS reported, citing its Brazilian partner media Brasil de Fato.

The ministry is also working to develop the extraction and processing of rare earth metals, of which Brazil holds the world’s second-largest reserves after China. A special council under the President has been established to coordinate this work.