updated 01:45 pm EDT, Tue April 12, 2011
Local iPad production slated for November
Apple's Brazilian plans are likely linked to an expansion by manufacturing partner Foxconn, a Reuters report suggests. Currently situated in Taiwan and China, Foxconn is "proposing a partnership" with Brazil worth $12 billion over the course of five to six years, according to the country's president, Dilma Rousseff. "We've been talking to them [Foxconn] for three months," adds science and technology minister Aloizio Mercadente.
"The negotiations are far from complete but I'm confident," Mercadente continues. Many topics are reportedly on the table, including taxes, financing, locations, logistics and broadband infrastructure. The Brazilian government is said to be handing out tax exemptions to companies willing to build tablet-style devices, which -- given the dominance of the iPad -- may be a strategy to lure Apple in particular.
While Rousseff claims that the $12 billion is related to monitors, iPad assembly also appears to be in the works. Mercadente says that Foxconn is planning to start building iPads in Brazil by the end of November.
Beyond taxes, other motivations for expanding to Brazil may be cheap workers and the need to keep up with Apple, which is often straining both production and supply capacities in Asia.