EU Expected to Propose Semiconductor Plant

European officials were expected to make a proposal Thursday to build a semiconductor plant in Brazil, local newspapers reported.

The proposal would be in exchange for the adoption of Europe's digital TV system in Brazil, reported local newspaper Estado de S. Paulo.

Brazilian development and industry minister Luiz Fernando Furlan is to meet in London with European Commission officials and business leaders to discuss the proposal.

The minister is expected to join talks with representatives of the DVB coalition, including Nokia, STMicroeletronics, Thomson, Philips, Rohde&Schwarz and Siemens.

The Brazilian government has to consider two powerful lobbying groups: Brazil's broadcasters, and the telecoms companies, according to Karl Lensing managing director of German antenna manufacturer Kathrein.

"The broadcasters favor the Japanese standard because it is harder for the telecoms fixed and mobile companies to penetrate, whereas the European standard is open," he told BNamericas, noting the Europe's DVB standard is more international.

"Argentina has already declared that if Brazil pursues the Japanese standard, they will not follow," noted Lensing, who is based in Brazil.

However, the Japanese standard "is the only system with the capability to maintain the necessary quality," Alexandre Raposo, president of Record TV was reported as saying recently. "The European standard doesn't have the necessary conditions to cover Brazil adequately," Raposo added.

Lensing is still unsure whether the decision will be made under President Luiz Inácio Lula da Silva's current administration. "This discussion has been ongoing for a long time," he said, noting that the delayed decision is halting some investment.

Brazil signed a non-binding memorandum of understanding with Japan for the possible adoption of its digital TV standard in April. Japan's Toshiba is also assessing options to build a semiconductor plant in the country.

BNamericas.com"

Posted to the site on 13th May 2006

Posted to: www.cellular-news.com/story/17359.php