Lenovo has announced that it will invest $100m into the creation of a research and development center that will create about 100 new jobs.
The research facility - which will be launched in January 2014 and will be based in the Science and Technology park of the city of Campinas (100km from the city of São Paulo) - also has the backing of the investment agency of the São Paulo state.
The R&D center of the Chinese company will be focused on the development of high-end servers, storage and cloud computing software.
Lenovo has also sealed an agreement whereby researchers from Unicamp, the technology-focused university based in Campinas, will be contributing to the work undertaken at the R&D center.
It is expected that the facility will boost the number of staff to 220 in the coming years.
The support of the São Paulo state government is seen as a major factor in the company's decision to invest in the region. According to investment agency Investe SP, the state of São Paulo is responsible for 72% of all public investments made in Brazil each year.
Investe SP does not provide financial contributions but does offer free support to companies looking to invest in new projects in the state of São Paulo or expand their existing businesses, providing strategic information as well as advice on tax, infrastructure, environmental aspects.
According to the agency, Lenovo was offered a "full service."
"We carried out a search for a suitable location for the investment research center and also put the company in touch with universities, research agencies, technology parks, municipalities and public and private organizations," said a spokeswoman for Investe SP.
The city of Campinas is one of the main tech clusters of Brazil and is home to research and development centers and factories of several tech companies including Motorola, Samsung and ZTE.
Update 22 Nov 2013 06:23 EST: This story has been updated to add information about the support Investe SP has provided to Lenovo.