By Lara Holmes

The Taiwanese firm Foxconn confirmed that it will begin manufacturing iPads in Brazil in December but is still negotiating a multimillion-dollar expansion plan in the country, said senior executives of the company and Brazilian government officials on Thursday.Rousseff President first announced the intention of Foxconn to build Apple Tablet popular in Brazil for an official visit to China in April.

Since then, plans have been delayed due to complex negotiations over tax cuts and other benefits for the company.

The lengthy negotiations reflect the sometimes difficult investment climate in the country and the government's ambiguous stance Rousseff, who is balancing between a strong government presence and the need to attract private capital.

 

However, Foxconn Chairman Terry Gou, and the Brazilian Minister of Science and Technology, Aloizio Mercadante, told reporters Thursday that the company begin to assemble the iPads locally in December at its plant in Jundiai, in the state of Sao Paulo.

Both sides are still negotiating new Foxconn investment, including factories for assembling two new touch screen monitors, said Mercadante.

"We have not finished the process but it is moving forward," said the minister, who made the announcement with great fanfare in April showing it as a sign of growing Asian investment and high technology industries in Brazil.

Six state governments of Brazil compete to host future factories, claimed Mercadante. Logistical factors such as proximity to airports, are key issues in this decision, the minister explained.

The business involves local investors, as well as state funding from the National Bank of Economic and Social Development (BNDES), he added.

If all goes well, Foxconn will invest up to 12,000 estimated that millions of dollars in the coming years.

"We will invest 12.000 million dollars in a (few) years, maybe four, maybe six years," Gou said in a news conference.

Brazil recently awarded tax exemptions on specific components of computers and attracted companies such as Samsung, Motorola and Positive Computer to assemble tablets.