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Telit expands manufacturing in Brazil for tax credit benefit
- June 9, 2021
- Steve Rogerson
Telit has expanded its partnership with Hi-Mix Eletrônicos, an electronic manufacturing service (EMS) provider in Brazil, to include production of LTE modules.
The expansion directly benefits Telit customers in Latin America by enabling them to take advantage of two major tax credits for modules made in Brazil.
The expansion provides device OEMs and systems designers with a 100 per cent exemption from Brazil’s Imposto sobre Produtos Industrializados (IPI) federal tax levied on imported products if they source Telit’s LTE modules from Hi-Mix. In addition, customers receive the Brazil Basic Productive Process (PPB) tax benefit from the purchase of cellular modules made in Brazil.
For over a decade, Telit and Hi-Mix have jointly made 2G and 3G modules in Brazil. Under the expanded partnership, Hi-Mix is initially producing the Telit ML865G1-WW 4G LTE modules, with future expansion to manufacture the ME310G1-WW and ME910G1-WW modules as well the LE910S1 family of LTE modules.
“For over a decade, our partnership with Telit has ensured convenient domestic access to innovative, affordable, high-performance 2G and 3G solutions,” said Daniel Carvalho, sales director at Hi-Mix. “This expansion gives Brazil’s device vendors and systems designers a broad selection of 4G solutions, and at significant savings compared to imported products.”
Dennis Kelly, senior vice president for Telit sales in the Americas, added: “By expanding our partnership with Hi-Mix, we’ve reinforced our commitment to OEMs, systems integrators and other customers in Brazil and the rest of the Latam region. Beginning with the Telit ML865G1-WW, users can leverage both Telit’s leadership in LTE and a significant IPI savings, giving them both competitive and financial benefits that wouldn’t be possible without our close relationship with Hi-Mix.”