RIO DE JANEIRO, Nov. 9 (Xinhua) -- Computer devices manufacturer Intel is to produce motherboards in Manaus, capital city of the northern Brazilian state of Amazonas, the company announced in a statement on Friday.

    The U.S.-headquartered company will establish a partnership with local manufacturer Digitron, which runs a plant in Zona Franca de Manaus, an area that relies on government incentives and lower taxes. The move is said to stimulate the industrial development in the Amazon rainforest region.

    It was the first time for Intel to sign such an agreement which the company said showed "the strong importance it gives to the Brazilian market once more."

    The motherboards, which will have the same characteristics as the standard Intel boards manufactured abroad, are expected to be launched in the local market in December. The company also expectsto sell 500,000 units of the product in the country next year.

    In its statement, Intel also highlighted Brazil's financial stability, tax incentives and significant computer market growth which are the favorable conditions that allowed the agreement to be reached.

    Oscar Clarke, Intel's director in Brazil, said the country is experiencing a great moment of growing consumption of Information Technology products, and it can possibly grow into "the biggest market all over the world" by 2010.

    The motherboard to be produced in Brazil costs approximately 20percent less than its imported counterpart.