According to Reuters, Foxconn’s new manufacturing plant in Brazil may be in jeopardy due to the company’s “crazy demands” related to tax breaks, lack of a skilled workforce, and the logistics of necessary infrastructure. The report claims after talking to government officials, “it is unclear whether the project will ever get off the ground”.
“The talks have been very difficult, and the project for a Brazilian iPad is in doubt,” one official said. “(Foxconn) is making crazy demands” for tax breaks and other special treatment, the official added.
Brazilian Minister of Science and Technology Aloizio Mercadante says the planned $12 billion investment might become a little less than originally expected. Reuters even suggests it’s possible Foxconn may only assemble iPads in Brazil using parts made elsewhere, rather than producing components onsite:
“One option could be for Foxconn or a Brazilian partner to simply assemble foreign-made parts to the iPad, rather than producing screens and other components locally. Other steps could also be taken to reduce the project’s scale, which may simply have been too ambitious for all parties.”
The project, which was initially set to begin production in July, was pushed back to November due to similar concerns. On September 14th, we told you Aloizio Mercadante confirmed that iPads made at Foxconn’s new plant in Jundiaí, near São Paulo, would hit the market by December. It’s unclear now whether or not the deal will fall through.
“The negotiation is rather complex. The situation for structure, technology, energy, logistics, it’s all very complex,” Mercadante told reporters.