According to the Chinese website, “the Brazil government [is] reportedly unsatisfied with Foxconn over demands for technology imports to the country, and is reducing its backing for Foxconn’s plans to establish factories in Brazil.”
Yet, it remains to be seen whether this is connected to the Apple products that the manufacturer makes in the country, as it could also be related to other electronic parts. Earlier this week, the newspaper Folha de São Paulo reported that Foxconn’s project to open a screen plant was now on hold, due to antagonism with the Brazilian Development Bank (BNDES).
Technology could be at the center of the dispute, as the Brazilian government was hoping that Foxconn would make last-generation OLED screens in Brazil, rather than LCD/LED ones – and is now suspending the Bank’s participation until an agreement is reached.
As you may remember, the $12 billion cooperation project was first announced during President Rousseff’s visit to China last year, and BNDES was supposed to cover 30% of the $4 billion initial investment phase. As for billionaire Eike Batista, he announced last fall that he would invest $500,000 in the new plant, which could be based near Belo Horizonte (MG).
In other words, this may not be directly related to the iPhones and iPads Foxconn is now manufacturing in Jundiai (SP); in addition, Digitimes insists that both parties are still actively working on solving this conflict. Still, it remains to be seen whether this issue will have an impact on Apple products and their distribution in Brazil.
We have reached out to the company for comment and will update this post accordingly.