As some of you will remember, last month Taiwanese electronics giant Foxconn announced it would start manufacturing iPhones and iPads in the city of Jundiai, Brazil. The company mentioned investments of $12 billion, and production was expected to start late in July.The objective of this relocation was to reduce the distance that shipments would need to travel to reach the North American market (right now they come from China), and to benefit from the tax breaks and incentives being offered by the Brazilian government. However, some critics pointed out that manufacturing Apple’s devices in Brazil had its risks, including the lack of skilled workers and the poor infrastructure of the country.
It turns out that such criticism was right on the mark.
Last Friday the Brazilian Science and Technology Minister Aloizio Mercadante announced that the production of the iPads was to be delayed by at least one month (i.e., until September), exactly because the company is having troubles to find skilled workers.
A local newspaper revealed that the company hired 175 engineers already, but 200 more are necessary to start production. Additionally, the road that will connect the city to the Foxconn facilities was not completed on time by the local authorities, which could create problems when transporting the shipments.
Production of the iPhone is expected to be delayed as well, and the Brazilian Minister said that Brazilian made iPhones and iPads will reach the market “probably by Christmas.”
Could be the first of many troubles Foxconn will face in Brazil?