1. Semiconductor Investment Attraction Case Policies for Investment Workshop Vienna, June 2011

2. APEX-BRASIL The best of Brazil to the world Export promotion of Brazilian products and services (2003) Promotion Brasil brand abroad (2003) Foreign direct investment attraction (2005) – Partnership with FIAS (2009) Support to internationalization of Brazilian enterprises (2011)

3. FIAS – Apex-Brasil PARTNERSHIP SCOPE CAPACITY BUILDING Apex-Brasil IP STRATEGIC PLANNING ENABLING Apex-Brasil TEAM IN WHOLE IP CYCLE SETTING UP A NATIONAL AND STATE LEVEL IP COORDINATION DIRECTLY WORKING WITH FRONTIER STATES TO PROACTIVELY ATTRACT INVESTMENTS IN SECTORS SUCH AS RENEWABLE ENERGY

4. SEMICONDUCTORS A CHALLENGING BACKGROUND BRAZIL IC TRADE DEFICITS = US$ 5 BILLION (2010) INDUSTRY TRENDS COST DRIVEN & CAPITAL INTENSIVE - Global sourcing = Global clients Caused by an IC domestic market demand of US$ 10 billion (onboard + raw) Disintegration and diversification Fabless model rise Subcontractor dominate the packaging process Sales & Customer Support Test & burn in Packaging Process Back-end Wafer Process Front-end Design, IP, Software 2007 – 2009 crisis >>> investment cut No regional links – global logistics IDM FabLess Design HouseFoundrySubcontractor Design, IP, Software

5. SEMICONDUCTORS GOVERNMENT RESPONSE - 2005: SEMICONDUCTOR INTERMINISTERIAL GROUP UNDER PRODUCTIVE DEVELOPMENT POLICY Develop local manufacturing capacity - 2010: Foreign governments partnership HDTV partnership with Japan >>> feasibility study - 2007: CREATED R,D&I PROMOTION POLICY HR development support and investment incentives - 2009: Seed investment in manufacturing (eco-system buildup) Small scale front-end facility

6. SEMICONDUCTORS TRANSITION TO INVESTMENT ATTRACTION WHEN Apex-Brasil BECAME MEMBER, THE GROUP… …WAS GOVERNMENT & ACADEMY CENTRIC… …DOING EVENTS DRIVEN PROMOTIONAL ACTIVITIES… …LACKING STRONG LINKS WITH PRIVATE SECTOR… …AND APPLYING AN INDUSTRY-WIDE APPROACH SINCE THEN Apex-Brasil ROLE HAS BEEN… …CAREFULLY PROPOSING A MORE SYSTEMATIC APPROACH… …TOWARD BUILDING UP A SEGMENTED VALUE PROPOSITION… …INVESTORS IDENTIFICATION & PROFILING… …CARRYING OUT STRUCTURED CAMPAIGNS

7. SEMICONDUCTORS UNDER WAY WORK…RESULTS SHOWING UP 3 regional road-shows (individual meetings) targeting 19 companies Chip design pre-existent cluster …WHERE RESULTS ARE REINFORCING THE STRATEGY Easier attractiveness improving Segment requiring smaller investment High profile jobs creation 4 companies made site visits 1 new investment & 1 expansion resulting +150 chip designer jobs RE-FOCUSING TO A SEGMENT QUICK WINS… 8 leads generated

8. SEMICONDUCTORS CHALLENGING PATHS AHEAD e.g. applying a certain differentiation to imported chip designed in Brazil (within WTO rules) ENHANCING CHIP DESIGN VALUE PROPOSITION COMPETITIVENESS EVOLVING TO IC MANUFACTURING SEGMENT ATTRACTION Strengthening partnership with: - Government administration; - Legislators and - Private sector players toward a more competitive investment climate

9. Thank you paulo.moraes@apexbrasil.com.br