Date:14/12/11

Brazil iPad delayed by local investment details

The planned construction of facilities to produce Apple iPad tablet computers in Brazil remains delayed as local officials continue to settle details related to local investment in the project, Brazilian Science and Technology Minister Aloizio Mercadante said Tuesday.

The production of the computers by Taiwanese computer manufacturer Foxconn Technology Group was initially forecast to begin this month, but will likely be delayed.

"The Brazilian part, including the business model and conditions, is still in negotiation," Mercadante said while speaking on the sidelines of a foreign scholarship program announcement."The first manufacturing module requires a very large investment on the order of $4 billion--local participation has been the biggest challenge."

Foxconn in April announced its interest in investing some $12 billion in Brazil to make the country the first emerging market to produce iPads outside of China.

At least six Brazilian states have been vying to provide a location for manufacture of iPad touch screens, and at least 3 Brazilian companies have expressed interest in becoming local partners.

The delay in the iPad project, meanwhile, has allowed several other tablet producers a headstart in taking advantage of recent tax breaks offered by the government to computer technology manufacturers.

Mercadante said a series of companies have already begun production of tablet computers in Brazil, including Motorola, Samsung, Toshiba Corp. affiliate Semp Toshiba, Positivo, and Research In Motion.

Despite delays in the iPad production launch, Mercadante Tuesday confirmed that production of Apple iPhones in Brazil would begin as scheduled on Dec. 16 at a facility in the city of Jundiai in Sao Paulo state.

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