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iPhone Maker To Open $12 Billion Facility In Brazil?

Taiwanese iPhone and iPad maker Foxconn is apparently seeking new business opportunities in Brazil, away from their manufacturing base in China. Presently, Chinese companies have been facing problems with manpower and wage inflation, as the demand continues to rise.

Last year various reports (opens in new tab) revealed that the facility in Shenzhen has had some serious work-related incidents, with a number of employees committing suicide due to supposed harsh labour conditions in the facility, amongst other things. Foxconn gave various statements regarding these allegations, and they have taken action to improve their workers' rights by offering incentive programs and increasing safety.

Foxconn is looking at possible ways of accelerating their production for Apple’s electronic devices due to the ever increasing demand. Presently, Brazil’s import tariffs for these gadgets are far higher than in the US and many other countries, so this move will allow the company to supply the rapidly growing domestic market whilst avoiding these import duties.

Another goal is to shorten the importation time for their products, being able to ship the devices faster and more cost-efficiently within Brazil and to other South American markets. The Brazilian government is also set to gain as it will deliver more jobs. Negotiations are still ongoing and both parties are confident that the deal will happen.

The $12 Billion project is predicted to be implemented in the next 5 to 6 years.

Radu is the founder of, and has worked as a freelance writer for ITProPortal, as well as having been blogging around since 2004. He is interested in anything Apple as well as gaming and mobile applications.