Adata Halts US Export Plans Amid Tariff Hikes, Expands R&D in Brazil

Strategic Insights -

Brazil-based subsidiaries of Taiwan-based memory and storage device manufacturer Adata, has put its export plans to markets such as the United States on hold, citing the 50% tariff hike on Brazilian products announced by U.S. President Donald Trump. The company is, however, ramping up investment in research and development in Brazil, planning to invest R$400 million from 2026 to 2030, with a focus on the development of electronic components.

Key Takeaways:

  • Adata has put its export plans to the US on hold due to the 50% tariff hike on Brazilian products announced by US President Donald Trump.
  • The company plans to invest R$400 million in research and development in Brazil from 2026 to 2030, focusing on the development of electronic components.
  • Adata is expanding its local production to include gaming accessories and components for the automotive industry.
  • The company expects to have invested R$165 million in R&D between 2021 and the end of 2025, including in-house development and partnerships with laboratories.
  • Adata is linked to tariff incentives granted under Brazil's PADIS program, the informatics legislation, and the Manaus Free Trade Zone.
  • The company operates two manufacturing plants in Brazil and employs 567 workers, making Brazil Adata's third-largest operation worldwide.
  • Adata's revenue in the first quarter of 2025 dropped 8.9% from the same period in 2024, with net earnings coming to $526.4 million (R$98.9 million).

Statistics:

  • Adata plans to invest R$400 million in Brazil from 2026 to 2030.
  • The company expects to have invested R$165 million in R&D between 2021 and the end of 2025.
  • Adata typically produces between 3.5 million and 4 million electronic circuits - RAM and Flash memory - per month at its Brazilian facilities.
  • Brazil accounted for roughly 20% of Adata's global revenue in recent years.
  • Adata reported revenue of 9.9 billion New Taiwan dollars (R$1.86 billion) in the first quarter of 2025, with a 50.3% year-over-year drop in net earnings.

Sources:

  • Valor: An interview with Paulo Júnior, CEO of Adata in Brazil (no date provided)
  • Valor: Reporting of Adata's first-quarter 2025 earnings (no date provided)
  • Valor: Mention of Law No. 14,968 enacted on September 11, 2024, for the Brasil Semicondutores program (no date provided)