Alckmin called Chinese ambassadors to say that Brazil does not participate in the conflict with the Netherlands and should not suffer embargoes
The federal government recognized this Tuesday (October 28, 2025) that the Brazilian automotive industry could face a shutdown in 2 or 3 weeks due to a lack of semiconductors. The warning was made by the executive secretary of the Ministry of Development, Industry, Commerce and Services, Uallace Moreira Lima, after a meeting with the acting president, (PSB), with representatives from the sector.
“If there is no solution in this short period of time, two or three weeks, there may be an industrial shutdown process.“, stated Moreira Lima. The secretary highlighted the government’s concern because the automotive sector accounts for 20% of the manufacturing industry and involves 130 thousand direct jobs and 1.3 million indirect jobs.
The meeting was attended by representatives from Sindipeças (National Union of the Automotive Components Industry), Abipeças (Brazilian Association of the Auto Parts Industry), the metalworkers’ union and Bosch, a key supplier to the automotive chain.
ALCKMIN ACTIVATED AMBASSADORS
Alckmin committed to negotiating with China to exclude Brazil from restrictions on exports of electronic components. The interim president called the Chinese ambassador to Brazil and the Brazilian ambassador to China to begin negotiations.
The objective is to make the Chinese government understand that Brazil is not involved in the geopolitical conflict between China and the Netherlands and, therefore, should not suffer the consequences of the embargoes.
“The Chinese minister here in Brazil committed to talking to the Chinese authorities, as well as the Brazilian ambassador to China, to dialogue in this process“, said Moreira Lima.
INDUSTRY SPECIFIC SITUATION
The secretary explained that the current situation is different from that experienced during the covid-19 pandemic. While in 2020 there was a global interruption in semiconductor production, now the problem is specific to a type of chip used in the automotive sector.
The company Nexperia, controlled by the Chinese Wingtech Technology, accounts for 40% of the global supply of semiconductors for flex-fuel cars, a predominant technology in Brazil. The Dutch government on September 30, and China responded with export restrictions.
“There is no company in the world that can operate in this production chain at this specific link. Therefore, it is up to the Brazilian government to carry out the negotiation process so that Brazil is not included in this embargo.“, stated the secretary.
Moreira Lima clarified that the government’s priority is to guarantee the supply of chips for Brazilian system owners: “Brazil’s commitment is to purchase chips for the domestic market, with no interest in exporting to other markets.”
LULA CITED VULNERABILITY
The president (PT) had already mentioned Brazil’s vulnerability in relation to semiconductors during a trip to Malaysia, on Saturday (Oct 26).
“It’s something we need, including to avoid the risk of Brazilian industry ending or reducing its production due to a lack of chips at any time of national crisis.“, said Lula when highlighting the potential for cooperation with Malaysia in the sector.
On that occasion, Brazil and Malaysia signed a memorandum of understanding on semiconductors, combining the Asian country’s technological expertise with the needs of the Brazilian market.
