After much pressure from scientists, trade unionists, workers at the National Center for Advanced Electronic Technology (Ceitec), the federal government reversed the extinction of the state-owned company. The decision is in a Decree published in an extra edition of the Official Gazette of the Union that was circulated on Monday night (6).
:: Discarded by Lula, sales of public companies advance with state governments ::
Located in Porto Alegre (RS), it is the only manufacturer of semiconductors in Brazil, a product that is in short supply in the world, even affecting the production of motor vehicles. Ceitec was founded by then president Luiz Inácio Lula da Silva in 2008.
The state-owned company came into the sights of Jair Bolsonaro (PL), in December 2020, a government decree authorized the liquidation (closing) of Ceitec with the argument that there were no interested in buying the company. Ministers of the Federal Court of Auditors (TCU) interrupted the process, as they considered the justifications presented by the government for privatization to be fragile.
The Decree published today authorizes the reversal of the company’s corporate dissolution process and says that the Attorney General’s Office of the National Treasury will adopt measures to hold an extraordinary general meeting of Ceitec in order to reestablish the regular functioning of the company. In addition to the dismissal of the liquidator and election of members of the board of directors. Also, the dismissal of the members of the fiscal council, which operated during the liquidation, and election of new members, for a period of two years; and setting the remuneration of administrators, members of the fiscal council and audit committee.
:: State governments insist on privatizations while the world renationalizes companies ::
According to the Minister of Science, Technology and Innovation, Luciana Santos, “the resumption of Ceitec represents an important opportunity to boost the semiconductor sector, increasing Brazil’s competitiveness and relevance in the global market.” According to her, the company will receive an investment of R$110 million in 2024, of which R$50 million is guaranteed and another R$60 million is being provided.
The reversal will reduce the risk of losses relating to facilities, machinery and equipment, in addition to allowing the public company to re-enter the market and resume business in a shorter period of time. It also demonstrates the importance of Ceitec in the context of public policies for the semiconductor and advanced and strategic components sector.
Importance of Ceitec
Ceitec was created by presidential decree and installed in Porto Alegre in 2008. It operates in the semiconductor area, designing and producing integrated circuits and radio frequency identification (RFID) tags.
:: In the technological war between China and the USA over semiconductors, what are Brazil’s options? ::
Its factory is capable of making electronic, optical and microfluidic (involving microscale fluids) devices. At the end of March 2019, the company was included in the Investment Partnership Program (PPI) and, in June 2020, the Program Council (CPPI) concluded evaluation and valuation studies of the company.
Decree No. 11,478, of April 6, 2023, excluded Ceitec from the National Privatization Program (PND) and revoked its qualification under the Investment Partnership Program of the Presidency of the Republic (PPI). The new decree considers the conclusions of the Interministerial Working Group that evaluated the process of reversing the company’s liquidation and the resumption of management decisions, currently prevented by the legal status of a company in liquidation.
Source: BdF Rio Grande do Sul
Editing: Katia Marko