Tuesday, May 03, 2011, 01:35 am
Foxconn has list of requirements for investing in iPhone, iPad production in BrazilApple manufacturer Foxconn reportedly has a list of requirements to be met by the Brazilian government before the company agrees to invest $12 billion in facilities that could eventually produce the iPad and iPhone in Brazil.
Brazilian newspaper Folha de São Paulo reported recently that Taiwanese manufacturer Foxconn has communicated a list of needs to government officials, as noted by Forbes.
According to the report, the list includes:
- 1. Large property to house more than one division of Foxconn.
- 2. High speed wi-fi.
- 3. Export priority shipping at São Paulo (and other unnamed) airports.
- 4. Financial support from the Brazilian National Development Bank, BNDES.
- 5. Government help in finding minority investors.
- 6. Transportation and logistics that permit quick delivery of goods to and from Foxconn facilities.
- 7. Office wired 100% with fiber optic cables.
In response, Brazilian president Dilma Rousseff has reportedly outlined her own requests for Foxconn. Rousseff asked that Foxconn hire "primarily Brazilian labor, transfer of technology and the basic respect for Brazilian labor rights and laws," the report noted, adding that Foxconn CEO Terry Gou publicly criticized Brazil's labor laws late last year.
Foxconn has seen its own share of criticism. Last year, a rash of suicides at the company's Shenzhen plant prompted investigations into whether the company was running a "sweatshop." Foxconn denied the allegations and claimed it would "stabilize the situation soon."
The Brazilian government has given itself an 8 month to two year time frame to meet the requests in hopes of enticing Foxconn and Apple to begin production in Brazil, according to the report. Foxconn already has facilities in São Paulo that produce hardware for Sony and Dell.
Earlier this year, Rousseff acknowledged that the Brazilian government is reviewing Foxconn's plans for a $12 billion investment in new facilities by the company. Brazil's science and technology minister also confirmed that Foxconn plans to begin building iPads at existing facilities in Brazil by November. Foxconn has yet to confirm its plans for such an investment in the country.
Due to hefty import taxes, Apple's products in Brazil cost up to three to four times U.S. prices. As such, a Foxconn plant in the country could greatly reduce costs for Brazilian consumers. It remains unclear, however, what tax structure would be imposed on Foxconn if it were to begin producing iPads in Brazil.
Last year, reports emerged that Brazilian entrepreneur Eike Batista, who is the eighth richest man in the world, was interested in bringing Apple to a new $1.6 billion development he is building at the Port of Acu.
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