Foxconn looks to produce Apple products in São Paulo after September

Wednesday, May 4, 2011

Taiwanese electronics producer Foxconn expects to begin producing Apple's iPhone and iPad devices in the Brazilian state of São Paulo sometime between September and November, local news service Agência Estado reported.

The news agency quoted the president of investment promotion agency Investe São Paulo, Luciano de Almeida, as saying Foxconn was looking at 5-6 different municipalities in the state to set up a new factory.

The municipality of Jundiaí, where Foxconn has the largest of its five Brazilian plants, is reportedly considered the favorite candidate.

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The news comes after Foxconn CEO Terry Gou announced plans in April to invest US$12bn and create 100,000 jobs in Brazil. The announcement was made during Brazilian President Dilma Rousseff's visit to China.

According to local media outlet Folha de S Paulo, Foxconn will require a few things before deciding to land its US$12bn investment in Brazil. The requirements will include a large property to house more than one company division, high-speed WiFi and export priority shipping at São Paulo and other airports.

Folha said Foxconn would also want financial support from national development bank BNDES and government help in finding minority investors. Furthermore, the manufacturer wants transportation and logistics permitting the quick delivery of goods to and from its facilities, as well as an office wired completely with fiber optic cables.

Talks are reportedly still underway within the government regarding what kind of tax structure would be on Foxconn-made Apple products and what tax incentives will be given to the company to get started. There is also the possibility that Brazil will need to set up a special customs policy for Foxconn projects to avoid backups in product shipments.

According to Folha de S Paulo, Brazil's government has given itself eight months to two years to work out details.