The IT activities demonstrated, during the last years, strong dynamism, highly qualified supply service in information technology and communication. The legislation in the area, together with a number of active policies of the BNDES (National Bank of Social and Economical development), has attracted to Brazil internationally recognized companies, that today manufacture information technology goods in several regions of the country.

The industrial policy package that has recently been launched by the Federal Government benefits industrial sectors, including IT industry. This industrial policy will safely allow the growth of the industrial sector within the next few years. The Government proposal includes the reduction of the IPI (federal excise tax on the manufacturing goods) and of the imports tax for the sector of engines and equipments and the creation of an agency for industrial development. The resources to finance the project are approximately R$10 billion.

Currently, the country has more than 5.4 thousand enterprises in the software industry, responsible for the generation of more than 158 thousand direct employment. Brazil is the seventh worldwide market in the segment, activating around U$7.7 billion per year, the equivalent to 0.71% of the GNP (gross national product), according to the Science and Technology Ministry data.

The growth in the IT and telecommunication infrastructure in our country increases the electronic products demand. In the last years, there has been an increase in the penetration of the electronic products in the market. The industry, supply service, telecommunication and IT not to mention the consumer goods such as automobiles, audio & video products and other electro-electronic gadgets incorporate every year more and more electronic components.

Another item that shows the increase of the future demand of the electronic complex is the impressive growth of the cable television market and digital TV that is being settled by the Communication Ministry committee, which foresees its implementation by the end of the current President's mandate, in 2006.

In 2003, the cellular telephony grew an average of 1 million new users per month, around 40 thousand per weekday. There were 39.1 million lines installed and 40.1 million cell phones in operation. According to the National Telecommunication Agency (Anatel), the number of cell phones in Brazil has reached 49.1 million in March 2004. This means an increase of 15 million cell phones (40%) in comparison to the same period in 2003. In May 2004 this number changed to 52.409.500 cell terminals in activity in the country, this means that for every 100 Brazilians, 29.26 has a cell phone. ANATEL had foreseen 52.5 million cell phones in the country within the period of 2000/2005; however, the results show that Brazil will end 2004 with more than 60 million cell phones.

By the end of 2003, we had 20 million computers operating in the country. Between 2005 and 2007, this number should reach 30 million. In 2005, there will be approximately 10 million connected to the worldwide network.

In the electro-electronic segment, the income in the 4th quarter of 2003 grew 17% when compared to the same time of the previous year, according to the information collected in ABINEE (Brazilian Electro electronic Industry Association). The projection indicates that within 20 years, the participation of this industry in the GNP will be 10% beyond the current 4.2%.