Foxconn has list of requirements for investing in iPhone, iPad production in Brazil

Posted:
in iPad edited January 2014
Apple manufacturer Foxconn reportedly has a list of requirements to be met by the Brazilian government before the company agrees to invest $12 billion in facilities that could eventually produce the iPad and iPhone in Brazil.



Brazilian newspaper Folha de São Paulo reported recently that Taiwanese manufacturer Foxconn has communicated a list of needs to government officials, as noted by Forbes.



According to the report, the list includes:

1. Large property to house more than one division of Foxconn.

2. High speed wi-fi.

3. Export priority shipping at São Paulo (and other unnamed) airports.

4. Financial support from the Brazilian National Development Bank, BNDES.

5. Government help in finding minority investors.

6. Transportation and logistics that permit quick delivery of goods to and from Foxconn facilities.

7. Office wired 100% with fiber optic cables.

In response, Brazilian president Dilma Rousseff has reportedly outlined her own requests for Foxconn. Rousseff asked that Foxconn hire "primarily Brazilian labor, transfer of technology and the basic respect for Brazilian labor rights and laws," the report noted, adding that Foxconn CEO Terry Gou publicly criticized Brazil's labor laws late last year.



Foxconn has seen its own share of criticism. Last year, a rash of suicides at the company's Shenzhen plant prompted investigations into whether the company was running a "sweatshop." Foxconn denied the allegations and claimed it would "stabilize the situation soon."



The Brazilian government has given itself an 8 month to two year time frame to meet the requests in hopes of enticing Foxconn and Apple to begin production in Brazil, according to the report. Foxconn already has facilities in São Paulo that produce hardware for Sony and Dell.



Earlier this year, Rousseff acknowledged that the Brazilian government is reviewing Foxconn's plans for a $12 billion investment in new facilities by the company. Brazil's science and technology minister also confirmed that Foxconn plans to begin building iPads at existing facilities in Brazil by November. Foxconn has yet to confirm its plans for such an investment in the country.



Due to hefty import taxes, Apple's products in Brazil cost up to three to four times U.S. prices. As such, a Foxconn plant in the country could greatly reduce costs for Brazilian consumers. It remains unclear, however, what tax structure would be imposed on Foxconn if it were to begin producing iPads in Brazil.



Last year, reports emerged that Brazilian entrepreneur Eike Batista, who is the eighth richest man in the world, was interested in bringing Apple to a new $1.6 billion development he is building at the Port of Acu.
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Comments

  • Reply 1 of 31
    magicjmagicj Posts: 406member
    Quote:
    Originally Posted by AppleInsider View Post


    basic respect for Brazilian labor rights and laws,"



    Could be a stickler. Do Brazilian laws prohibit a company from sucking out the souls of children and using them to power their machinery?
  • Reply 2 of 31
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by magicj View Post


    Could be a stickler. Do Brazilian laws prohibit a company from sucking out the souls of children and using them to power their machinery?



    Temple of Doom took place in India, not Brasil.
  • Reply 3 of 31
    superbasssuperbass Posts: 688member
    Quote:
    Originally Posted by AppleInsider View Post




    According to the report, the list includes:

    1. Large property to house more than one division of Foxconn.

    2. High speed wi-fi.

    3. Export priority shipping at São Paulo (and other unnamed) airports.

    4. Financial support from the Brazilian National Development Bank, BNDES.

    5. Government help in finding minority investors.

    6. Transportation and logistics that permit quick delivery of goods to and from Foxconn facilities.

    7. Office wired 100% with fiber optic cables.



    8. All employees must sign a contract stating they won't commit suicide.

    9. All employees must have protective netting installed under their dormitory windows, just in case they decide to violate said contracts.

    10. All employees must work 60 hours per week + 16 hours legally allowed overtime + 12 voluntary "bonus" hours every time Apple releases a new product and 4 months thereafter.

    11. All employees must be genetically bred to withstand exposure to harmful chemicals without proper protective equipment.
  • Reply 4 of 31
    benicebenice Posts: 382member
    At 4, seeking financial support from the country's own bank is poor form. Foxconn should do their numbers based on an unsubsidised investment. Apple have sometimes put their hand out for subsidies too but governments need to resist it.
  • Reply 5 of 31
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by benice View Post


    At 4, seeking financial support from the country's own bank is poor form. Foxconn should do their numbers based on an unsubsidised investment.



    Getting the government to invest in Foxconn will lead to a greater likelihood of government support and less red tape. It’s a good thing.



    Quote:

    Apple have sometimes put their hand out for subsidies too but governments need to resist it.



    Proof?
  • Reply 6 of 31
    benicebenice Posts: 382member
    Quote:
    Originally Posted by solipsism View Post


    Getting the government to invest in Foxconn will lead to a greater likelihood of government support and less red tape. It’s a good thing.





    Proof?





    Less red tape is a good thing. But government support doesn't come without more strings.



    http://www.appleinsider.com/articles...m_project.html
  • Reply 7 of 31
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by benice View Post


    Less red tape is a good thing. But government support doesn't come without more strings.



    http://www.appleinsider.com/articles...m_project.html



    There is no mention of a subsidy for the NC data center. In fact, just the opposite, Apple had to guarantee to spend at least $1 billion over 10 years. They requested a tax break for it in return, but that?s not a subsidy.
  • Reply 8 of 31
    benicebenice Posts: 382member
    Quote:
    Originally Posted by solipsism View Post


    There is no mention of a subsidy for the NC data center. In fact, just the opposite, Apple had to guarantee to spend at least $1 billion over 10 years. They requested a tax break for it in return, but that?s not a subsidy.



    There's nothing in it. A tax break is an indirect subsidy.
  • Reply 9 of 31
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by benice View Post


    There's nothing in it. A tax break is an indirect subsidy.



    That makes your argument into anyone or any company that has ever received anything that could be defined as a tax break as now being subsidized the government. That line or reasoning doesn?t jive with me.
  • Reply 10 of 31
    n2macsn2macs Posts: 44member
    Why doesn't Apple have Foxconn build these facilities in the USA? What about a USA company using USA labor again?
  • Reply 11 of 31
    magicjmagicj Posts: 406member
    Quote:
    Originally Posted by n2macs View Post


    Why doesn't Apple have Foxconn build these facilities in the USA? What about a USA company using USA labor again?



    You've not been following along with the whole Foxconn thing, I'd gather. There's no way a company like that could operate in the U.S.
  • Reply 12 of 31
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by n2macs View Post


    Why doesn't Apple have Foxconn build these facilities in the USA? What about a USA company using USA labor again?



    SImple answer: You couldn?t afford the products they make.
  • Reply 13 of 31
    magicjmagicj Posts: 406member
    Quote:
    Originally Posted by Superbass View Post


    8. All employees must sign a contract stating they won't commit suicide.

    9. All employees must have protective netting installed under their dormitory windows, just in case they decide to violate said contracts.

    10. All employees must work 60 hours per week + 16 hours legally allowed overtime + 12 voluntary "bonus" hours every time Apple releases a new product and 4 months thereafter.

    11. All employees must be genetically bred to withstand exposure to harmful chemicals without proper protective equipment.



    The sad thing is, everything you wrote is actually true at Foxconn plants today.
  • Reply 14 of 31
    anantksundaramanantksundaram Posts: 19,046member
    Get serious, folks. Actually, this is a surprisingly mild set of requirements.
  • Reply 15 of 31
    ranreloadedranreloaded Posts: 397member
    ...

    12. No macumba on the facilities.

    13. No dancing samba on the facilities.

    14. No playing soccer in the facilities.

    15. Not committing suicide if your soccer team looses the tournament.
  • Reply 16 of 31
    kotatsukotatsu Posts: 1,010member
    I guess Chinese slave labour is getting too expensive.



    Who here would gladly pay more to buy products made in your home country? I know I would.
  • Reply 17 of 31
    tbelltbell Posts: 3,146member
    We all afforded them when they were build in the countries like the US and Ireland. We've come along way from when Apple wasn't allowed to build Macs in China because they were too powerful and the US government wouldn't allow it.



    Further, when Apple was building in the western world was at the height of the economic boom. When companies like Apple shipped the bulk of its manufacturing overseas to countries that utilize slave labor is when the economy tanked.





    Quote:
    Originally Posted by solipsism View Post


    SImple answer: You couldn’t afford the products they make.



  • Reply 18 of 31
    anantksundaramanantksundaram Posts: 19,046member
    Quote:
    Originally Posted by kotatsu View Post


    I guess Chinese slave labour is getting too expensive.



    Who here would gladly pay more to buy products made in your home country? I know I would.



    That train left the station a long time ago in countries like the UK. It's not coming back.



    In any event, it's not so much the labor, as it is having easy logistical access to an electronics supply chain that is efficient and high-quality.
  • Reply 19 of 31
    al_bundyal_bundy Posts: 1,525member
    Quote:
    Originally Posted by benice View Post


    At 4, seeking financial support from the country's own bank is poor form. Foxconn should do their numbers based on an unsubsidised investment. Apple have sometimes put their hand out for subsidies too but governments need to resist it.



    $12 billion is a lot of cash. even apple will try to find low cost financing instead of writing a check
  • Reply 20 of 31
    suddenly newtonsuddenly newton Posts: 13,739member
    Quote:
    Originally Posted by solipsism View Post


    Temple of Doom took place in India, not Brasil.



    LOL...



    Foxconn could always go to Costa Rica. And no, I'm not starting that debate again.
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