The company that manufactures the Apple iPad will start manufacturing in Brazil, said the Science and Technology Minister Aloizio Mercadante. Yesterday the Brazilian government reported that president Dilma Rousseff had a meeting with Foxconn president Terry Gou. The company expects to invest an estimated $12 billion in Brazil during the coming years and there might be some financing by the Brazilian Development Bank (BNDES).
Brazil’s official newspress agency said that Foxconn is negotiating the construction of two facilities to manufacture touchscreens in Brazil. The Minister Mercadante highlighted that there are only four countries – China, Taiwan, Korea and Japan – that currently produce this kind of screen.
Foxconn executives reportedly talked with Dilma about the demand for skilled labor and about the need for a large area for the installation of the industrial park, and about energy and water requirements. The importance of access to an international airport was also discussed at the meeting.
Foxconn would also be negotiating the participation of national partners, which is seen as a good point by the Brazilian government because it would transfer technology between countries.
Early this year, IDC released a survey predicting that 300,000 tablets would be sold in Brazil this year. But that prediction was made before the government released an interim measure offering tax savings of up to 31% for tablet buyers. Naturally the move piqued corporate interest in manufacturing for the Brazilian market. ZTE Corp. has already bought two facilities and is investing $200 million.
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