Foxconn’s plans to open a production facility in Brazil for the iPad surfaced last year. Foxconn intended to build iPads for Apple in Brazil, but the negotiations with the government over tax incentives stalled. Those negations have now taken a turn for the better as far as Foxconn is concerned and the plan for iPads made in Brazil has picked back up.
The government of Brazil has given Foxconn an exemption or reduction on taxes that would normally be paid on the production of tablets. The deal was signed on Monday of this week. The decree says that touchscreen tablets weighing less than 750g with no keyboard will qualify for incentives on IPI (Excise Tax), PIS (Social Contribution Tax) and COFINS (Federal Contribution Tax). The tax breaks are also good for the production of accessories, cables, power supplies, and manuals that go along with the tablets.
Foxconn plans to spend $12 billion in Brazil to set up its manufacturing plant and start building the tablets. The negotiations stalled last year when a Brazilian government official said Foxconn had made “crazy demands” for tax cuts. The construction of iPads is expected to start quickly.