Years after India broke into the hi-tech business with information technology and China by way of manufacturing, Brazil may find its entrance in an unusual place—a cow's ear.             

The South American giant will this year begin using its first locally designed microchip in cattle earrings.

The device could help authorities crack down on the destruction of the Amazon rain forest caused by roaming herds.

The “Cow Chip” is a homegrown innovation that Brazil hopes will help it overcome challenges in its sprawling economy and over time make it an exporter of niche technology.

[Eduard Weichselbaumer, CEO, Ceitec]:
“Any product these days, you want to create—Brazil has a large automotive industry—it needs electronics. Now, without having an electronics industry, which creates things, actually, in the country, that's very difficult, you have to import and then you're basically dependent on other countries' pace.”

The cattle trackers can help ranchers demonstrate their cows have not been exposed to illnesses such as hoof and mouth disease.

This may also be crucial for creating a database of cattle showing which animals grazed on recently deforested land.             

But cows are just the start. Ceitec is also eyeing designs for first-of-their-kind chips such as one that could help find stolen cars and another for sorting biomedical products.             

Brazil hopes having a foothold in the semiconductor business can help ensure access to needed technologies while creating new jobs at home.