Back in April of this year, it was discovered that Foxconn, the company that assembles Apple’s iPads, was in talks with the Brazilian government about opening a $12 billion factory in the heart of the Brazilian town of Jundiai.
Things were going smoothly for awhile, with the plant on schedule to open in November of 2011, with some rumors saying that iPad production could begin in Brazil as early as July 2011. By September, Aloizio Mercadante, Minister of Science, Technology, and Innovation, had announced that the factory was ready to begin assembling iPad 2s.
iPad production did not start in when it was supposed to, despite what Mercadante said. As it turns out, it’s expensive to make an iPad 2 in Brazil without the necessary tax breaks, and for awhile, Foxconn and the Brazilian government were at odds over taxes. They were unable to strike a deal, putting the entire operation in peril.
The last time we heard about Foxconn vs. the Brazilian government was at the end of October, when it looked like both sides were working out an agreement. Brazil offered Foxconn tax breaks, priority customs access, and subsidized loans in an attempt to get the Taiwan-based supplier to invest in the plant, which would create jobs and help convince other manufacturers that Brazil could handle a serious industrial commitment.
According to Apple Insider, those negotiations were finally successful, as the Brazilian government just approved tax reductions and exemptions that will allow Foxconn to begin iPad production in the country.
A new Brazilian decree states that companies who invest in the research and development of keyboardless touchscreen tablets that weigh less than 750 grams quality for excise, social contribution, and federal contribution tax incentives.
Now that it’s received the green light to go ahead with its plans in Brazil, Foxconn will immediately begin ramping up iPad production to meet demands. There’s no word on whether the Brazilian factory will be used to assemble the current iPad 2 or if it will be working on the iPad 3, which is likely due in March.