Foxconn, the company that assembles iPads and iPhones on behalf of Apple, is allegedly in talks with the Brazilian government about the possibility to open a $12 billion factory in Brazil, according to Reuters. Foxconn is also negotiating with Brazilian officials to retrofit existing production plants to start building iPad 2s later this year, to help Apple keep up with the overwhelming demand for the device.
Currently, all iOS devices are exclusively built off Foxconn factories located in Shenzhen, China. Countries like Brazil have been trying to convince Apple and Foxconn to build additional factories to build iPhones and iPads, to supplement the existing Chinese factories, and offer a production center better suited to serve the North and South American markets.
Foxconn and Apple are desperately trying to find ways to increase the production output of the iPad 2, to deal with the shortages currently experienced across the globe. Foxconn shipped 2.5 million units last month, a number much lower than Apple’s production target, which is close to 5 million units a month.
Foxconn is currently ramping up more production lines, and should be able to ship at least 4 million units a month, for the months of April, June and May, to match Apple’s current forecast of at least 12 million units to be sold during this period.