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…

Computing

Best Apple deals: Save on AirPods, Apple Watch, iPad, MacBook

Apple MacBook Air M1 open, on a table.

Apple makes some of the most popular tech on the planet. Apple devices offer premium hardware and designs, and its software ecosystem makes work and play easier, more convenient, and often more fun. Apple devices regularly earns spots among the best smartwatches, best laptops, best wireless earbuds, and best tablets. All of these devices offer a great opportunity to save right now, as some of the best Apple deals we’ve seen are currently available to shop. We’ve rounded them all up into one place for your convenience, so if you’re in the market for a new MacBook, Apple Watch, iPad, or something else made by Apple, read onward for more information on the best Apple deals taking place right now.
Apple AirTag (4-Pack) -- $83, was $99

Insert the Apple AirTag into your bag, gadget, or any item that you may misplace, so that you can track it if you lose it. The Apple AirTag is one of the best Bluetooth trackers if you're using an iPhone or iPad because not only does it offer a one-tap setup, but it can utilize the millions of devices in Apple's Find My network to help you find your stuff if it goes beyond the Bluetooth range of 30 feet. It's powered by a replaceable battery that can last for more than a year before you need a new one.

Mobile

You may have to wait a while longer for new iPads

The backs of Apple's iPad Air and iPad Pro, with the tablets place on a table.

Just days ago, the Chinese website IT Home said Apple would announce the launch of its 2024 iPads on Tuesday, March 26. However, Bloomberg's Mark Gurman — who still believes new iPads will arrive this spring — has debunked this rumor. In other words, we'll probably have to wait a little longer for new Apple tablets to arrive.

Gurman had previously stated that Apple's next-generation tablets would arrive in late March or April. Of the March 26 rumor, Gurman took to X, formerly Twitter, to say it was "not true."

Mobile

Get 32% off the cellular model of the iPad Pro 12.9 this weekend

The iPad Pro on a desk next to a stylus and AirPods.

If you've been thinking about getting the iPad Pro with cellular connectivity but you've been hoping to buy the tablet from iPad deals for a discount, this may be what you've been waiting for -- a 32% discount from Amazon's Woot on the 12.9-inch, Wi-Fi + Cellular model of the 2021 Apple iPad Pro with 128GB of storage. From $1,199, it's down to just $810, which is a steal price for this device with savings of $389. However, while there are still several days left on this offer, it's highly recommended that you proceed with the purchase immediately because there's a chance that stocks don't last that long.

Why you should buy the 2021 Apple iPad Pro 12.9
It's not the latest version of Apple's top-of-the-line tablet -- the honor goes to the 2022 Apple iPad Pro -- but the 2021 Apple iPad Pro is still a pretty powerful device by today's standards. That's because it's equipped with Apple's M1 chip, which promises fantastic speed and excellent graphics when you're working on your multimedia projects, multitasking between several apps, or playing console-level games. With its 12.9-inch Liquid Retina XDR touchscreen, you'll enjoy high-brightness and high-contrast content, and its mini-LED display provides deeper black levels and more vibrant colors.