Electronics Production | September 30, 2011
Brazil's USD 12 billion iPad deal in peril
The USD 12 billion investment plan for Taiwanese EMS-provider Foxconn to produce iPads in Brazil might be hampered by stagnant negotiations and other structural problems.
The deal is "in doubt due to stagnant negotiations over tax breaks and Brazil's own deep structural problems such as a lack of skilled labor", writes Reuters (citing unnamed government sources).
"The talks have been very difficult, and the project for a Brazilian iPad is in doubt.(Foxconn) is making crazy demands" for tax breaks and other special treatment." (Reuters article citing government official.)The plan - originally announced by Brazilian President Dilma Rousseff - has encounted numerous problems. The production start, then scheduled for July, was postponed to November. Now, the project might be in peril all together; at least in the form it was previously envisioned, writes Reuters.