Seagate, the world's second largest manufacturer of hard disk drives with a 30% market share, will assemble its products in Brazil, according to a report by business daily Valor Econômico.
Production will be outsourced to Phitronics, a unit of Taiwan's Kinpo Group.
According to the newspaper, Phitronics plans to invest 71.1mn reais (US$44mn) in the manufacturing hub of Manaus and create 311 jobs over the next three years.
Phitronics is expected to produce 1.72mn Seagate drives in the first year of operations, 5.2mn units in the second year and 6.5mn units in the third year.
More than 96% of the components used in the drives will be imported, the report said.
By Sergio Caldas