Qualcomm and Universal Scientific Industrial (Shanghai), a subsidiary of Advanced Semiconductor Engineering, have signed an agreement to form a joint venture in Sao Paulo. This joint venture, which remains subject to various closing conditions, would focus on an installation of a semiconductor module facility in Sao Paulo dedicated to the design, development and fabrication of modules and components for smartphones and IoT devices in Brazil.

The agreement formalizes the non-binding memorandum of understanding signed by the two parties in March 2017 with the Sao Paulo State government, according to the companies. The agreement to form the JV is a result of ongoing collaboration among Qualcomm Technologies, USI and the government entities who have been working together to lay the foundation and foster the growth of the semiconductor industry in Brazil, as well as set the conditions for the possible creation of this JV.

The JV will offer a line of system-in-package (SiP) modules powered by Qualcomm's chipsets. The modules include, in a single component, radio frequency and digital components for smartphones and IoT devices. These products are designed to help simplify the device engineering and manufacturing processes, and should also provide cost and development time savings to OEMs and IoT device manufacturers. Manufacturing these components in Brazil may also assist in the reduction of the import deficit of integrated circuits, by expanding and diversifying the Brazilian production of semiconductors.

Assuming successful formation, the JV is expected to start manufacturing in 2020, the companies said.

"This project should help foster the adoption of IoT in Brazil, as some of the technology platforms being supported by this joint venture will be designed with an eye towards helping to facilitate the development and manufacturing of connected devices beyond smartphones across the country," said Rafael Steinhauser, senior VP and president, Qualcomm Latin America.

"USI has been at the forefront of miniaturization technology for more than 15 years. Our track record and experience make us an ideal collaborator for the manufacturing of highly integrated multi-component modules used in smartphones and IoT devices," said CY Wei, president of USI. "Brazil is the largest economy in Latin America with a significant growth potential for integrated modules. USI will be utilizing the technological competence of its parent company, ASE, to help build up the semiconductor cluster in Brazil and Latin America. We are excited to be a part of this joint venture that could help boost local employment in the next five years," he added.

"The creation of this joint venture by world class companies is a major step towards the insertion of Brazil into the global semiconductor chain, accelerating the development of high technology products and creating important competencies in our country by bringing highly specialized jobs to Brazil in the areas of design and manufacturing of semiconductor modules", said Brazil's science and technology minister Gilberto Kassab.

By: DocMemory
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