Foxconn Plans New Brazil Factories to Make IPads, IPhones

Foxconn Technology Group (2354), maker of Apple Inc. (AAPL)’s iPad and iPhone, will invest 1 billion reais ($494 million) to build factories near Sao Paulo.

Foxconn will have as many as five manufacturing plants in Itu city and will create 10,000 jobs, Simon Hsing, a spokesman for Foxconn’s Taipei-based flagship Hon Hai Precision Industry Co., said in the Taiwanese capital today. The new facilities, where production will begin in 2014 and reach full capacity in two years, will enable most aspects of iPad and iPhone assembly, Hsing said, confirming a report by Agencia Estado.

Expanding in Brazil will help Foxconn, which employs more than 1 million people globally, make devices closer to consumers in South America for clients including Lenovo Group Ltd. (992) and Hewlett-Packard Co. (HPQ) Most Apple and HP devices are made in China, where Foxconn has the majority of its workforce.

The new plants will be located at an industrial park in Itu, about 100 kilometers (60 miles) from Sao Paulo, Hsing said. Foxconn has operated in Brazil since 2005, and has five plants in Sao Paulo, including an assembly plant for Apple products in Jundiai.

Foxconn won’t benefit from special tax incentives from the Sao Paulo government, Hsing said.

To contact the reporter on this story: Tim Culpan in Taipei at

To contact the editor responsible for this story: Michael Tighe at

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