📊Executive Summary

The Brazilian automotive sector is facing a critical risk to vehicle production due to a severe shortage of semiconductors. The National Association of Motor Vehicle Manufacturers (Anfavea) has raised alarms about potential production halts in Brazil, which could occur within weeks. This crisis has intensified following the Dutch government's takeover of Nexperia, a major semiconductor manufacturer, leading to Chinese export restrictions on electronic components. Anfavea has urged the Brazilian government to take swift action to prevent semiconductor shortages, drawing parallels to the disruptions experienced during the COVID-19 pandemic. The Brazilian automotive industry is recovering, with a production increase of 6% in 2025, but the semiconductor crisis, combined with high interest rates and declining demand, threatens 1.3 million jobs in the supply chain....