LONDON – Foxconn Technology Group, the world's largest contract manufacturer of electronics products, could spend up to $12 billion over the next five or six years setting up operations in Brazil, according to reports.
The Taiwanese company, which has most of its operations in mainland China and makes the iPhone and iPad for Apple, is in talks with the government of Brazil, the talks said.
The headline figure comes from Brazilian president Dilma Rousseff, speaking while on a visit to Beijiing, China. "You've got an ample range of investments that go from $300-to-$400 million to $12 billion over 5 to 6 years in the case of Foxconn," the BBC quoted Rousseff as saying.
Foxconn is open to moving out from China as rising labor costs there have started to impact its profitability in recent quarters.
After the suicides, the Chinese government tightened the laws to prevent exploiting poor workers. Foxconn's margins are like 1% or so. They have no choice but to look for new place for keeping the costs low.