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Foxconn's $12 billion expansion in Brazil comes with caveats

updated 07:45 am EDT, Mon May 2, 2011

Foxconn's expansion plans not finalized

Following reports that Apple plans to build iPad 2s in Brazil, and confirmation that Foxconn plans to invest $12 billion in expanding its production facilities in the Brazil, a new report has revealed more details about the proposal. According to Forbes, the Brazilian media is reporting that Foxconn's proposed investment comes with a number of conditions.

Foxconn, which already produces motherboards and hardware for Sony and Dell among others at its Brazil operations, is looking for tax incentives from the Brazil government before it commits to the expansion. Other requirements include high speed Wi-Fi, export priority shipping at São Paulo and other airports, financial support from the Brazilian National Development Bank (BNDES), and offices wired with 100 percent fiber optic cables.

The Brazilian government has outlined a broad time frame of between 8 months to two years to work out the details of the investment, before it believes it can secure Foxconn's business.

Brazilian customers currently pay up to four times the US price for Apple products due to high import tariffs. It Apple products were to be manufactured in Brazil, such as the iPhone and iPad, it is likely that they could become much more affordable. At present, many Brazilians either make Apple product purchases when abroad, or through third-party importers from Paraguay.

by MacNN Staff




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