The Brazilian Minister of Science and Technology, Aloízio Mercadante said recently that Brazil will have two factories touch screens for tablets. He met at the Presidential Palace with President Rousseff and executive Terry Gou, the chairman of Foxconn, a Taiwanese company that produces the iPhone and iPad from Apple and will be responsible for making the screens.
“It will be more than one factory. We are currently discussing the first factory, but the first factory will already be associated with a second plant.
The minister said that is not defined where the plants will be installed and whether the two will be in the same state, but said the plant will be in cities close to an international airport.
“It needs a lot of energy, lots of water, lots of logistics. Need an international airport that supports daily flights in order to supply the components that are needed in this industry. Therefore, the choice of site has required a very complex research. Six Brazilian states have participated in this consultation process, “said the minister.
Mercadante also said that the Brazilian government will require Foxconn “unrestricted transfer of technology” in order to manufacture the products in Brazil.
According to Mercadante, the manufacture of tablets will be made by Foxconn in partnership with national companies. “We still need to complete this transaction because it involves national partners. The president wants to have technology transfer without conditions, so massive and unrestricted. That means a lot of investment in human resources and partners in Brazil that are able to follow these requirements, “he said.
Mercadante also said that the National Bank for Economic Development (BNDES) will participate in the process of investment required to build the factories. “We’re talking billions. BNDES is indispensable in this process,” he said.
The minister declined to specify a deadline for the construction of factories, but stressed that entrepreneurs see the World Cup 2014 as a “target”. “I imagine that entrepreneurs, including them [Foxconn], look at this event as an important target. Because the World Cup always much leverage these electrical and electronic components,” he said.
Upon leaving the meeting, the president of Foxconn reiterated that the company intends to invest in Brazil $ 12 billion in four or six years. “There is no change.’ll Invest $ 12 billion in four or six years. It depends on the capacity of local engineering,” said Terry Gou.
Gou’s visit takes place on the same day that the Brazilian government has established the exemption of taxes for tablets produced in Brazil. Foxconn is the largest electronics manufacturer in the world and conditioned the start of production in the country to the granting of tax incentives which were offered to other computer products. With the measure of tax cuts, the prices of tablets to fall more than 30%, according to the Ministry of Communications.
Tax incentives are beginning to assert from this Thursday, according to publication of the provisional measure that stimulates the manufacture of the devices in the country free of PIS and Cofins in the “Official Gazette”.