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Brazilian development bank BNDES plans to invest in Chinese electronics producer Foxconn Technology's new touch screen factory in the country, according to international media.
Foxconn is planning to invest US$12bn in Brazil over the next five years to produce Apple iPads and iPhones, and will designate US$8bn of the funds for building touch panel production facilities.
Hon Hai Group, the anchor company of Foxconn Technology, has yet to confirm the news regarding the investment or announce the details and production schedules for the plant.
According to the publication cens.com, the "good" relationship between Brazilian officials and the Hon Hai Group was reflected in chairman Terry Gou's compliment regarding the Brazilian government's "goodwill" in attracting foreign investments.
Gou confirmed that his group will boost its cooperation with Brazil's local electronic industries via technology exchanges and joint ventures on worker and enterprise knowledge incubation, and will set up production lines for tablet PCs there in the future.
Earlier this week, Brazil's lower house approved a government provisional decree reducing taxation on tablets produced domestically.
Under the bill, sales of tablets produced in the country would be exempt from the PIS and Cofins welfare taxes. Cost reduction for the end consumer is expected to reach some 31%, according to the communications ministry.