Government to continue electronics manufacturing push in Tierra del Fuego

Wednesday, January 19, 2011

Argentina's government has issued a decree to further the opening of Tierra del Fuego province to electronics manufacturing, according to a statement from the ministry of industry.

The decree will aim at increasing manufacturing of laptops, modems, netbooks and tablets for new companies, as well as for those who already have operations in Tierra del Fuego.

The decree also outlines the requirements for products to be accredited with Tierra del Fuego origin, which manufacturers can use to take advantage of tax benefits. Some of the requirements include surface mounting of motherboards, as well as that at least 50% of the RAM be made in Argentina.

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The ministry of industry recently approved three projects with companies BGH, Newsan and Athuel Electronica, which will lead to the production of 1.7mn computers and 80mn pesos (US$20.1mn) in investments. An additional 13 projects are currently being reviewed by the government.

Mobile phone heavyweights such as Nokia and Brightstar expect to increase production in Tierra del Fuego in 2011. Nokia expects to triple its numbers from 2010 to 2.4mn units, while Brightstar plans to double the previous year's production to 6mn units.

Currently, the electronics manufacturing sector in the province has approved projects totaling US$370mn from 2010-14, with an increase in the production of cell phones, LCD monitors, TVs and DVD players. To date, the projects have created 2,100 jobs.