12 Billion dollar Foxconn factory in Brazil is in doubt

By Mike Dunn September 29, 2011

Foxconn is famous mostly due to the fact that it makes several Apple products, and because there is a history of suicides at its factories. Well Foxconn is making news again thanks in part to its attempt to build a 12 billion dollar iPad factory in Brazil.

According to a Reuters report the Taiwanese manufacturer is having a hard time at the bargaining table with Brazilian officials. The source says that the 12 billion dollar deal is now “in doubt” due to failed negotiations. The major sticking point seems to be tax breaks that Foxconn was hoping to receive but Brazil isn’t eager to give out. The source says, “(Foxconn) is making crazy demands” for tax breaks and other special treatment.”

Brazil not only has high taxes for products produced in the country they also have high taxes and tariffs on imported products. For example a 16 gigabyte Apple iPad which retails for $500 in the U.S. sells for about $900 in Brazil.

Another hurdle facing the huge project is the labor pool. Brazil is hosting the 2014 World Cup, and the 2016 Olympics and needs to execute several big building projects to make those events a reality. There is doubt that the country can produce enough of a work force for all those projects, let alone an additional 12 billion dollar iPad plant.

The conclusion is that Foxconn might have to scale down the project and reduce what exactly will be produced in Brazil. Originally Foxconn wanted to build screens and other components locally, but now they might be looking to just assembling parts made elsewhere around the world.

We are curious if the news that Pegatron has won the iPad 3 production contract with Apple might also be throwing a monkey wrench into Foxconn’s plans to build a plant that was meant to focus on building iPads.

Editors' Recommendations

Topics

Former Digital Trends Contributor

Mike graduated from University of Arizona with a degree in poetry, and made his big break by writing love sonnets to the…

Mobile

This iPad just got a rare discount — save $100 at Best Buy

Call of Duty: Mobile on the iPad (2022).

The standard Apple 10.9-inch iPad rarely sees a deep discount but that’s the case over at Best Buy at the moment. Normally priced at $449, you can buy one for just $349 for a limited time. A hefty saving of $100, this is one of the better iPad deals at the moment and worth checking out if you want a new tablet or you’re keen to buy someone a great gift. Here’s what the Apple 10.9-inch iPad has to offer.

Why you should buy the Apple 10.9-inch iPad
The Apple 10.9-inch iPad is a pretty good tablet for anyone who wants something straightforward and useful. It has an attractive 10.9-inch Liquid Retina display with True Tone support so it looks great with whatever you’re doing, whether you’re browsing the internet, watching videos, or playing a game. It’s powered by the A14 Bionic chip with a 6-core CPU and 4-core GPU which is why the Apple 10.9-inch iPad easily joins the best iPads list for anyone seeking a great mid-range example. It’s easily capable of playing many games through Apple Arcade as well as being snappy when it comes to looking up YouTube videos and similar.

Mobile

Best iPad deals: Save on iPad Air, iPad Pro, iPad Mini for the New Year

iPad Pro 2020 Screen.

There's a tablet out there for almost everyone, with designs available to accommodate anything from kids to creative professionals. The Apple iPad is one of the most popular tablet lineups, with the best iPads offering a wide range of options and capabilities. If you’re in the market for a new iPad, there are some great iPad deals worth shopping right now. In fact, not only are iPads some of the best Apple deals currently taking place, but some of the best tablet deals as well. We’ve rounded up what we feel are the best tablet deals to shop at the moment. They include iPads, iPad cases and covers, and iPad accessories, so read onward for more details.
Apple iPad 10.2 (9th Gen) 64GB Wi-Fi -- $249, was $329

Apple's A13 Bionic chip is no M1 or M2, but it still offers 64-bit architecture and neural engine support for excellent performance. In other words, this 10.2-inch iPad is incredible value. It has a 10.2-inch Retina display, 64GB of storage, supports Touch ID and Apple Pencil (1st Gen), and it's size, plus all-day battery life make it an excellent choice for anyone with an on-the-go lifestyle.

Mobile

Apple accidentally revealed a big iPad Pro display upgrade

The iPad Pro (2022) sitting in the Magic Keyboard.

iPad Pro 2022 Joe Maring / Digital Trends

Apple is already past its usual upgrade cycle for the iPad Pro after the previous model was released in October 2022. Latest reports hint at an announcement now set for "early May" this year where Apple will unveil the new iPad Pro and iPad Air models, even though a proper event seems unlikely. Despite Apple's suggested lack of fervor, these purported new iPad models are expected to bring significant changes, especially to the display.