Brazil is hoping for a tech-related miracle. With the industrial town of Jundiai bracing to rename a street after Steve Jobs they are making no secret of their hopes that manufacturing iPads and iPhones for Apple will breathe new life into their struggling economy.
Foxconn has been producing units for Apple out of their factory in Shenzhen, China but has been trying to negotiate a deal for quite some time that would have them move these manufacturing operations to Brazil.
This is something that we first reported on back in May of this year and have been following closely ever since. While Brazil was quick to announce that things were all set to go early last month, later news seemed to indicate that some negotiation was still required with regards to details such as much-needed tax breaks.
Word has it that progress is being made on both sides at this point. Brazil has reportedly offered Foxconn an incentives package that will see them enjoying tax breaks as well as priority customs access and subsidized loans. The results of these negotiations will have to be very lucrative as any arrangements will still require Foxconn to ship most parts from other countries to Brazil simply to be assembled there. There are hopes that in the future Brazil will be able to take over the creation of these parts as well as they mature in this industry.
If Brazil can make Apple happy there is a lot of potential for other manufacturers to enter the country as many, including Motorola Mobility Holdings Inc and Samsung Electronics Co Ltd, have expressed interest in opening factories there.
The considerable consumer market in Brazil is of interest to all of these tech giants, but in the end dollars and cents will rule their decisions. Most feel Brazil is still a considerable ways away from being ready for this kind of industrial commitment.
[via The New York Times]