Foxconn Electronics (Hon Hai Precision Industry) reportedly plans to build up a supply chain for touch panels in Brazil, but has not yet decided as to where the production base will be located due to preferential tax incentives offered by respective local governments in the country, according to industry sources.

Foxconn's total investment for the planned supply chain is expected to top US$12 billion, triggering competition for the project from a number of local governments in Brazil, the sources indicated.

Although the strategy of setting up a supply chain in Brazil is probably correct, Foxconn has not yet finalized the project, the sources pointed out.

However, some sources are skeptical about the effectiveness and benefits of a such plan due to investment risk, and the difficulties establishing a distribution system for key components, including TFT panels, covers and reinforced glass.

Source:digitimes