Foxconn wants to build a $12 billion factory in Brazil that will allow the company to produce mountains of iPads but now they say their plan is “in doubt” as government officials fail to offer the right tax incentives.
Officials for the company are also concerned that they may not be able to find enough skilled laborers to work in the factory.
In the meantime Brazil is already bogged down with infrastructure projects including construction which is already underway for the 2014 World Cup which will be followed by the Olympics just two years later.
According to critics there is simply no way officials can finish both sports projects and oversell Foxconn’s “intelligent city” at the same time.
Speaking to Reuters one official said:
“The talks have been very difficult, and the project for a Brazilian iPad is in doubt.”
That same source says Foxconn has “crazy demands,” while adding, “The negotiation is rather complex. The situation for structure, technology, energy, logistics, it’s all very complex.”
Brazil’s Science and Technology Minister Aloizio Mercadante held a press conference in early September to announce plans for the $12 billion facility which will be housed in Jundiaí, Brazil. During the process conference he revealed:
“We’re dealing with a lot of issues, like the [Foxconn] trying to figure out how to do business in Brazil … and Brazil figuring out how to produce these complicated products,” another Brazilian official said. “Maybe we will end up starting with something smaller.”
One thing is for certain, at $12 billion Foxconn better hope that Apple doesn’t lose their luster anytime soon.