Brazil’s Top University Proposes ‘Pocket Fabs’ to Reduce Reliance on Global Semiconductor Supply Chains

The University of São Paulo researchers developed a semiconductor manufacturing model which helps Brazil decrease its risks from international political conflicts and worldwide supply chain dependencies. 

The project, created through collaboration with important Brazilian industrial federations, like Fiesp, focuses on developing Pocket Fabs, which are compact automated manufacturing facilities that produce specific products for local markets. The proposal seeks to offer an alternative to the traditional multibillion-dollar “megafab” model that dominates the global chip industry, and creates cartels, as is the case in the US.

Rethinking Scale in Chip Production

The researchers at USP show that semiconductor processing costs remain constant across all plant sizes for each square millimeter of semiconductor processing. The assessment establishes the framework for implementing right-sizing through which manufacturers adjust their production capacity according to specific regional and sector requirements instead of matching their output to compete with major Asian and American manufacturers.

Pocket Fabs will operate under its plan to deliver services mainly to the automotive and aerospace sectors of Brazil which use established certified chip designs that worldwide manufacturers no longer develop.

The project targets a daily production goal between 200 thousand and million chips which researchers consider sufficient to fulfill, for example, the needs of Brazil's automotive industry. The same strategy would be applied to other sectors such as aviation and clean energy generation companies that also need a certain number of chips per year.

Reducing External Dependence

Brazil maintains an annual electronics trade deficit of about $50 billion which matches its expenses for imported chemical materials. Project leaders like Marcelo Knorich Zuffo describe the Pocket Fab strategy as a move toward greater technological autonomy.

"The researchers stated that we reached a point in human development where chip technology now serves as an essential component for global economic progress. The nations that maintain control over this technology will obtain economic advantages during trade disputes which will leave less powerful countries vulnerable", said Zuffo.

According to him, the USP team can develop adaptable production systems for specific industrial sectors by choosing to focus on "additive micromanufacturing" and "heterogeneous packaging" methods.

Automation and Environmental Efficiency

The proposed facilities would also emphasize automation and environmental efficiency. The plants operate as "Green Fabs" because advanced robotics and artificial intelligence systems will handle most of the work in cleanroom settings. The approach enables energy savings through its design which reduces requirements for extensive climate control equipment.

Intel and Samsung Electronics continue to build semiconductor manufacturing plants in the United States and China which creates a framework for this initiative to work within its global industrial context. 

The Pocket Fab model from USP provides decentralized manufacturing through its distributed production network which proponents believe will help developing countries build domestic chip manufacturing capabilities while decreasing their dependence on centralized global supply systems.