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Foxconn may set up general touchscreen plant in Brazil

updated 10:40 pm EDT, Wed October 19, 2011

Foxconn may not focus solely on iPads in Brazil

Foxconn's Brazilian iPad manufacturing might also include a general touchscreen panel line. Inside rumors late Wednesday from Digitimes had it establishing a supply chain which, combined with the iPad plant, would crest a value of $12 billion. It might not necessarily be located at the iPad-oriented factory in Jundiai as China-based Foxconn was hunting for tax breaks in different parts of the country, the tips said.

Some risks would persist. Foxconn would be setting up a distribution system virtually from scratch, thousands of miles away from its regular base. Touchscreens need to source both the actual display as well as the touch layer and glass covers.

The Brazil outpost is thought to have been built with Apple's long-term concerns in mind. Along with helping to meet demand, the plant would streamline getting iPads to the Americas. Brazil itself will benefit as locals won't be punished with a 40 percent import price hike just to buy a product made from outside the country.

A general touchscreen plant would reduce the amount of components that would need to come from other areas as well as give Foxconn some agility if it makes other Apple products or gets new customers entirely.

by MacNN Staff



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