Latin America Generative AI Chips Market Size and Forecast by Type, Node Type, End User Application, Distribution Channel, and Region: Statistics | 2019-2033

Latin America Generative AI Chips Market Outlook

The Latin America generative AI chips market is rapidly evolving in 2025, led by Brazil’s bold push to digitize its industrial landscape with a sweeping BRL 186.6 billion public-private investment commitment. As per David Gomes, Manager – Semiconductor, this initiative integrates national priorities across semiconductor production, cloud computing, artificial intelligence (AI), and robotics—effectively positioning Brazil as a technological force in the region. At the heart of this movement lies the newly passed Brazil Semicon Act, allocating BRL 7 billion annually to bolster ICT infrastructure and semiconductor R&D. With ambitions to digitally transform at least 25% of Brazilian industry by 2026 and 50% by 2033, this structured industrial policy signifies a calculated pivot toward high-value, innovation-led growth.

A substantial component of this growth is rooted in the transition away from expensive front-end fabrication (fabs) toward more economically feasible verticals such as IC design, advanced chip packaging, and memory modules. Brazil’s strategy now centers on cost-effective innovation—such as multi-chip modules (MCMs), system-in-package (SiP) technologies, and 2.5D/3D packaging. These segments are critical for generative AI applications, where processing performance, power efficiency, and form factor play defining roles. The QSiP initiative by Qualcomm and USI in Campinas, backed by a US$200 million investment, is one such example of this transformation. Their advanced packaging facility aims to make Brazil a production hub for cutting-edge smartphone and IoT semiconductor modules—strategic for AI workloads and latency-sensitive applications.

Complementing these efforts is the Brasil Mais Produtivo smart factory program, which is disbursing BRL 560 million to digitize micro, small, and medium-sized enterprises (MSMEs). This focus on productivity uplifts and local value creation is expected to accelerate AI chip adoption among industries deploying automation, predictive maintenance, and data-driven operational models. Brazilian firms like Smart Modular Technologies and HT Micron have already positioned themselves as pioneers in embedded components and memory modules—essential building blocks in edge computing and AI inference models.

Yet, growth is not without friction. The past liquidation and now revival of CEITEC, Brazil’s state-backed semiconductor company, illustrates the systemic volatility. Still, under the leadership of Augusto Gadelha, CEITEC’s restructuring into a hub for microprocessor design and silicon wafer R&D aligns with the nation's push for technological sovereignty. This shift is also timely, as Brazilian semiconductor exports, currently generating roughly R$5 billion annually, are poised for growth amid expanding demand for localized AI hardware solutions.

Global cooperation is key to Brazil’s long-term play. Strategic partnerships with countries like China and the Netherlands are being actively pursued to mitigate knowledge gaps and secure critical equipment. At the same time, the Novo PAC—a US$60 billion industrial growth blueprint—encompasses not just semiconductors but also datacenters, AI R&D, 6G, and robotics, thereby creating a robust ecosystem for next-generation AI chip manufacturing. Tax benefits, coupled with long-term incentives like the Processo Produtivo Básico (PPB) and extensions of the PADIS program through 2073, further de-risk private sector participation.

Industry voices echo optimism. A senior executive at ABISEMI remarked that Brazil’s structured, long-horizon policy framework is finally aligned with global best practices and investor confidence. “This is no longer just about catching up; Brazil is planning to lead,” he said, highlighting how institutional backing has shifted the perception of Brazil from a passive market to an active innovation contributor.

Further anchoring this transformation is Brazil’s decision to prioritize regional balance. Increased tax credits for companies in historically underfunded regions—like the North and Central-West—are designed to decentralize the chip value chain and stimulate cross-country resilience. Moreover, the government’s R$2.18 billion (US$400 million) Mais Inovação – Semiconductors program is issuing non-refundable grants to support design and testing capabilities, crucial for generative AI model training infrastructure and low-latency computing networks.

Although talent shortages persist, Brazil’s university system continues to produce competitive semiconductor engineers. To combat brain drain, national initiatives now offer subsidized stipends and incentives to retain technical graduates. Still, bridging the global skills gap in AI hardware design and EDA tools remains a challenge Brazil must address to maintain momentum.

In summary, the Latin America generative AI chips market, with Brazil at the forefront, is transitioning from aspiration to execution. A comprehensive mix of policy alignment, foreign partnerships, targeted investments, and technological pragmatism is reshaping the regional AI silicon landscape. While challenges in continuity, funding, and talent retention persist, Brazil’s current trajectory suggests it is firmly on the path to becoming a regional semiconductor leader with global relevance.

Author: Jayson Gomes (Manager – Fintech)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

Latin America Generative AI Chips Market Scope

Latin America Generative Ai Chips Industry: Country Coverage