Lula wants to reverse privatization of state-owned semiconductor – 02/08/2023 – Market

President Luiz Inácio Lula da Silva (PT) created a working group to evaluate the reversal of the privatization and liquidation process of Ceitec (National Center for Advanced Electronic Technology). The federal state company is one of the only manufacturers of semiconductor chips in Latin America.

According to a decree published in the Federal Official Gazette this Wednesday (8), the group will be coordinated by the Ministry of Science, Technology and Innovation and will also include representatives of the AGU (Attorney General of the Union), the Civil House and the ministries of Development, Industry and Commerce, Finance and Management.

The collegiate will have 120 days to complete the studies and present them to the President of the Republic.

Ceitec was included by the government of Jair Bolsonaro (PL) in the privatization program and even fired at least 89 employees in a process of dismantling and alienating the state-owned company that was taken for granted by the past management.

Among the independent state-owned companies, Ceitec had one of the most qualified technical staff in the country, with 57% of professionals having post-graduates, in addition to doctors and post-doctors.

Created as a civil association in the mid-2000s, the organization was nationalized in 2008 during the government of Luiz Inácio Lula da Silva (PT) and linked to the Ministry of Technology, at the time led by Sergio Rezende.

The goal was to insert Brazil into the global semiconductor market —whose demand would take off with the popularization of smartphones—, induce the establishment of other microelectronics companies and train human resources for the area.

Semiconductor chips are essential for cutting-edge technology products, from computers to cars to 5G. Ceitec does not have products for this type of use in its portfolio, but it could develop parts for the automobile sector, which has faced shortages in the last year.

This is not the first state-owned company that was in the process of privatization by Bolsonaro that Lula considers reversing the situation. The petista adopted a similar measure in relation to other companies linked to the government, such as Correios and EBC (Empresa Brasil de Comunicação).

When he announced the name of PT member Aloizio Mercadante for the presidency of the BNDES, still in 2022, Lula stated that “privatization will end in this country”.

Privatizations stopped by Lula:

• Mail
• EBC (Empresa Brasil de Comunicação)
• Dataprev
• Nuclep (Nuclebras Heavy Equipment)
• Serpro (Federal Data Processing Service)
• Warehouses and properties owned by Conab (Companhia Nacional de Abastecimento)