Foxconn, an international IT giant located in Taiwan, is the biggest manufacturer of electrical components for computers and cellphones. They also happen to be on Apple’s payroll for manufacturing iPads and iPhones. Foxconn is now considering investing a whooping amount of $12 billion in Brazil to build a new manufacturing line for the iPad.
Interestingly people thought that this might signal a move from China where a large chunk of their production takes place but the company was quick to clarify their position through the following statement
An investment in Brazil is not likely to signal a move away from China, where Foxconn is the largest private-sector employer. While it has been diversifying away from its traditional production bases in southern China, like several rivals and clients, the company will need to stay close to its main supply chain.
But we think it is clear that the company is keen to invest in Brazil as it happens to be a strategically important growing market for the company as well as for their most important clients i.e Apple. The Cupertino’s are keen to target the huge market of Brazil, so it would be crucial for Foxconn to provide services locally. They could make huge savings on costs by producing locally and in turn benefit from a most promising consumer market.
It has been reported that the Brazilian Technology Minister has been in talks with Foxconn relating to this development because understandably if Foxconn opens a manufacturing plant in Brazil, job opportunities for approximately 100,000 people, skilled and unskilled alike, would be created.
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