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Foxconn begins Apple iPad assembly in Brazil

Wednesday, September 14, 2011 · 12:33 pm · 28 Comments

“According to a report by Brazilian website UOL, the Brazilian Minister of Science and Technology, Aolizio Mercadante, has confirmed during a hearing with the Commission of Economic Affairs that the new factory in Jundiaí is “ready”, and already making iPads that will begin shipping in Brazil starting this December,” Federico Viticci reports for MacStories.

“A first report from April suggested Foxconn would invest $12 billion in this new factory, with iPad production starting in late August / early September — the timeline seems correct,” Viticci reports. “Additionally, it was reported in June Foxconn had already hired 175 engineers and sent them to China for training on how to build iPads.”

Read more in the full article here.

Categories: News

Tags: Brazil, Foxconn, Hon Hai, iPad

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Comment Feed

28 Comments

Arnold Ziffel

Wednesday, September 14, 2011 - 12:51 pm · Reply

iPad sales in Brazil will rocket skyward. Go Apple and AAPL!
LynnW

Wednesday, September 14, 2011 - 12:59 pm · Reply

Obrigado!!!!
Ricky Badger

Wednesday, September 14, 2011 - 1:09 pm · Reply

Cool! Maybe it will come with Samba…
Now, Now...

Wednesday, September 14, 2011 - 1:10 pm · Reply

Well Apple got those operations up quickly in Brazil, but you know if Apple decided to build an American factory here in the states, Apple would still be at the social and environmental impact study phase, while awaiting on license this and permit that, while dealing with America’s judicial system from being sued by the Obama Government on behalf of their Union supporters because the factory was to be built in a ‘Right to Work’ state!

What a sad commentary of America’s Manufacturing situation today! So Brazil it is. America use to be like Brazil when it came to “Get ‘R Done!” Now “Get ‘R Done” is just a comedic catch phrase!
- Macedsince84
  
  Wednesday, September 14, 2011 - 1:19 pm · Reply
  
  Hit it right on the head. Which of course in America gets the liability lawyers after you, so be sure never hit it on the head in America.
- jb
  
  Wednesday, September 14, 2011 - 2:24 pm · Reply
  
  The main reason that iPads are being manufactured in Brazil is because the Brazilian government imposes a hefty import tax on all Apple products. This makes Apple (and all other imported products) extremely expensive in Brazil.
  
  Aside from the stick of the import tariffs, Brazil does make it easy for companies to set up businesses there. Though, it is certainly nowhere near as cheap as in China. Aside from the salary paid to workers, companies must pay “social taxes” that amount to almost 100% of the worker’s salary.
  
  Apple does not manufacture in the United States because of the cost. Yes, this cost does include environmental regulations, but it also includes the fact that land, salaries, etc cost a lot more here. If apple were to decide to manufacture in the US… do you really think anyone will give them too much of a hard time? Here in Silicon Valley, they are practically giving away manufacturing facilities to any company that wants to manufacture here.
- _Bill_
  
  Wednesday, September 14, 2011 - 2:29 pm · Reply
  
  At last they got it out of China – keep on trucking with bringing manufacturing to South America – and stable African countries while you’re at it. Help them improve their economies by providing jobs!
- Engineer
  
  Wednesday, September 14, 2011 - 2:31 pm · Reply
  
  But, but, but, obamassa’s got a new JOBS BILL! Have you heard about the JOBS BILL! He’s going to spend TRILLIONS of people’s money– -money that would be wasted building factories and businesses in the USA— to CREATE JOBS!
- Randian
  
  Wednesday, September 14, 2011 - 7:42 pm · Reply
  
  Right on, “Now, Now”! You hit the nail square on the head! Can you imagine trying to build the Interstate Highway system in THIS country today? IT COULD NOT BE DONE! But how happy the enviro’s would be in their tie-dyed shirts and Birkenstock sandals.
  - warbux
    
    Thursday, September 15, 2011 - 7:31 am · Reply
    
    I have to agree with you neocon dorks: With so many finger pointing cry babies like yourself, this country no longer has the means to maintain first world status. The good news for losers like you is that soon the working wage will be a bowl of rice per day them we can bring manufacturing back to America and your mother/girlfriend can then get a job.
    - Randian
      
      Thursday, September 15, 2011 - 12:44 pm · Reply
      
      And how do you propose to stop this growing and inevitable international trend, warbux? People around the world are willing to sacrifice and work unbelievably hard to have what YOU and I take for granted in this country: houses, cars, boats, vacations, retirement plans, and the like. And they will do it all for LESS than you and your paleolib brothers are willing to take. WHAT ARE YOU GOING TO DO ABOUT IT, warbux? WHAT? Tell them they can’t have it, because you’ll be unhappy? Welcome to the future, brother. China, India, Brazil, et al., will soon own your home and luxurious lifetstyle . . . and you’ll be living on the street.
- kingmel
  
  Thursday, September 15, 2011 - 12:08 am · Reply
  
  It just *has* to be all one way, doesn’t it, No No?
  
  Manufacturing did not go overseas for just one reason – there were many reasons. And it happened over decades – I saw it start in my youth and I recognized it then. I saw the factory where my father work shrink, and it wasn’t because of the union. You could get rid of all of the regulations and the unions and you still could not compete with the low cost labor overseas. That will change over time as the workers in China demand better compensation and better working conditions. You might frown on that, but since you are not the one doing the work under those conditions, I don’t believe that your opinion counts for anything.
  
  I have no doubt that some regulations can be eliminated or modified for the general benefit of business, worker, and economy. But not all regulations are evil, and I have no desire to incentivize manufacturing jobs by chasing China down into the environmental cesspool.
  
  You seem to believe that you have all of the answers. But your comprehension of the situation is clearly quite limited and your solutions overly simplistic, to say the least. I would say that you deserve the government representatives that you so desperately seek, except that I would have to live with them, too. And I don’t believe that the country can handle much more of that “I signed my right to reason away” nonsense.
  
  There is a quote about reality always trumping wishful thinking. Good luck with your battle against reality.
  - just me
    
    Thursday, September 15, 2011 - 9:09 am · Reply
    
    +1
stableos

Wednesday, September 14, 2011 - 1:16 pm · Reply

I snorted at that!
Chaz

Wednesday, September 14, 2011 - 1:17 pm · Reply

Nah, this is result of a country, Brazil, that is awash in cash from it’s oil exploitation, and has no free trade agreements with more developed nations. They have erected huge tariffs on imported goods, making it attractive for companies to go to Brazil and set up manufacturing.

The business climate, government oversight, etc. is much worse than the USA, but, money’s money.
- Macedsince84
  
  Wednesday, September 14, 2011 - 1:24 pm · Reply
  
  Full o’ crap you are. That does not explain how the got it done so fast and how America can’t. As stated earlier, bueracratics would still be doing environmental impact surveys.
  - Arnold Ziffel
    
    Wednesday, September 14, 2011 - 3:02 pm · Reply
    
    So, exactly how long did it take to build this factory? Rather than saying how it was done ‘so fast’, I’m interested in knowing how long it took. Who knows, this may have been in the works for quite some time.
  - kingmel
    
    Thursday, September 15, 2011 - 9:22 am · Reply
    
    What if the factory already existed in the U.S.? Just sitting there empty, waiting to be filled with lines of CNC milling machines for the fabrication of unibody chassis for Apple products? Then your argument regarding the “building” part and the associated regulations would not be as much of a factor. And, yet, it still does not happen.
    
    Manufacturing involves a chain of suppliers of materials and parts, as well as a skilled *and* motivated work force. If you seek to cast blame, then it has to go to the American citizens as much as it goes to business or Government. People talk about the American spirit, but I wonder how many current citizens would or could perform the feats of courage and strength demonstrated by our ancestors. I think that most of the pioneering spirit has atrophied through disuse.
tornjean

Wednesday, September 14, 2011 - 1:30 pm · Reply

I hope that means my next ipad is from there and not china!
That would be great!!
jack pulliam 3rd

Wednesday, September 14, 2011 - 1:44 pm · Reply

Hopefully the Carnival atmosphere will cut down on the suicides
Modima65

Wednesday, September 14, 2011 - 1:45 pm · Reply

Sad! I expected iPads were made in Mexico. But our insecure climate and, perhaps, our more costly taxes and labour benefits drove Apple to choose Brazil. Poor of you, estadounidenses, everyday your government looks more llike our Mexican government… infested of bureaucracy. Just don’t let corruption drown you too.
- Geo B
  
  Wednesday, September 14, 2011 - 2:10 pm · Reply
  
  Apple did not choose Brazil, the company that Apple contracts production out to chose Brazil. They chose Brazil for reasons mentioned earlier in the article – extreme tariffs. Many incentives to build a plant there.
  
  As for the US regulations, yes we have too many hoops to jump through, but some of that actually leads to cleaner air and water which I like and so do our children.
  - rickpartington
    
    Wednesday, September 14, 2011 - 11:07 pm · Reply
    
    cleaner air and water, i doubt this from the worlds largest polluter.
Spark

Wednesday, September 14, 2011 - 2:57 pm · Reply

Brazil’s Manaus Free Trade Zone Incentives:
Federal Government Incentives

Corporate tax reduction – Eligible corporations may receive a 75 percent corporate tax reduction on “exploration profits” until 2013.78
Import Tax reduction and exemption – Eligible corporations established in the Manaus FTZ may receive Import Tax reduction and/or exemption granted by the Federal Government of Brazil as follows:
Foreign goods entering the Manaus FTZ that are destined for internal consumption and re-exportation are exempt from Import Tax;
Certain eligible foreign goods destined for the western Amazons region are exempt from Import Tax;
Import Tax reductions may be applied to eligible “raw materials, intermediate goods, secondary materials and packaging materials” from foreign destinations if these good are used in the manufacturing process of companies established in the Manaus FTZ and the finished goods is destined to another area in Brazil. Such reductions are pending pre-approval from Suframa and certain other statutory and formulary restrictions;
Excise Tax exemption applies to eligible foreign goods traded within the Manaus FTZ, as well as to foreign goods utilized within the zone subject to certain restrictions. The Excise Tax exemption is also applicable to goods produced within the Manaus FTZ and to domestic goods entering the zone; and
Export Tax exemption for goods produced within the Manaus FTZ.79
State Government Incentives

Value Added Tax exemption – The State of Amazonas provides an exemption for VAT to eligible goods for consumption or industrialization or re-exportation by other Brazilian States to the Manaus FTZ;80
Value Added Tax credit – The State of Amazonas grants VAT credit equal to the amount payable at the point of origin for goods manufactured in other Brazilian States as these goods enter the Manaus FTZ;81 and
Value Added Tax refund – VAT on eligible goods is refunded subject to certain conditions.82
Municipal Government Incentives

Tax exemptions – Corporations established in the Manaus FTZ are exempt from paying applicable municipal Housing, Territorial and Urban Real Estate Tax, as well as from paying tax for waste disposal and conservation, for a period of 10 years;83 and
Other Incentives – The Manaus FTZ offers an exemption from paying a corporate license fee for a period of 10 years, subject to certain conditions.84
RDF

Wednesday, September 14, 2011 - 8:25 pm · Reply

I’d gladly purchase one not made in Red China.
- N8nNC
  
  Wednesday, September 14, 2011 - 11:32 pm · Reply
  
  Catch up on current events (err, of the past 20 years). It’s not Red China anymore, it’s Green (as in moolah) China. Fortunately, as China and Brazil improve economically they will become more environmentally conscious. As societies become wealthier, their citizens want better quality things and ways of life, and can devote more time, energy, and money to getting them. The US is there in many respects, but young misers keep coming to replace the dead misers.
  - RDF
    
    Thursday, September 15, 2011 - 11:36 am · Reply
    
    Still Red China.
    When people can freely express themselves and vote from a competitive slate of candidates, I’ll consider not calling it Red China.
richbrazil

Wednesday, September 14, 2011 - 11:35 pm · Reply

Winners to this news: brazilian consumers who will be less assaulted by the massive taxes that fuel an inefficient government.
Apart from the cost of goods, consumers in Sao Paulo pay 18% sales tax and depending on what consumer good, close to 22% VAT (IPI). Foxconn will probably not escape the ICMS sales tax on locally made iPads, but they will most definitely get breaks on import duties levied on part sets, as well as some level of exemption on ipi