Huawei will invest $800 million to build a new smartphone factory in Brazil

 Huawei will invest $800 million to build a new smartphone factory in Brazil

Netease Technologies News, August 10, according to foreign media reports, the governor of Sao Paulo state in southern Brazil said Huawei plans to invest $800 million in building a factory in the state in the next three years. The Chinese technology giant is expanding its Latin American business. (Netease Editors Note: Brazil imposes heavy taxes on imported mobile phones, such as the price of the iPhone is about twice that of the United States, so many mobile phone manufacturers set up factories in Brazil to avoid paying tariffs. )

Accompanied by Huawei executives on Friday, Sao Paulo Governor Joao Doria said on a trip to China that the company was stepping up preparations to build the plant to meet market expectations after Brazils first 5G spectrum auction. The first 5G spectrum auction in Brazil is scheduled for March 2020.

Huawei told Reuters in an e-mail that the new factory might produce smartphones. In a statement, Huawei said, Based on the performance of its smartphone business in the local market, Huawei will consider building a factory in Sao Paulo in the near future.

According to the state government of Sao Paulo, Huaweis production capacity in the state will be geared to Brazils domestic and foreign markets.

Huawei has been operating in Brazil for 21 years. It has a factory in Sao Paulo that produces telecommunications infrastructure equipment with about 2,000 employees.

The site of the new plant will be decided in the next few months, and the $800 million will be invested within three years of the upcoming Brazilian 5G auction. Doria said the plant would employ 1,000 people by then.

In April, Reuters reported that Huawei had launched two high-end smartphones in Brazil and hired local employees to manage its business. The company is trying to break into the Brazilian smartphone market for the second time. According to Xinhua News Agency, Huawei released its smartphone P30Pro and P30lite in Brazil in April. The price of P30Pro is 5499 reals (9850 yuan), and the price of P30lite is 2499 reals (4480 yuan), which is higher than that of China.

Huaweis smartphones sold in Brazil are made in China, and now it has considered making them locally in Brazil.

Although the U.S. government has used its national power to block Huawei worldwide, few countries have responded to the blockade so far. Brazils vice president, Hamilton Mourao, said in June that Brazil had no plans to ban Huawei from accessing its 5G network.

In Sao Paulo, Brazil, Huawei also has factories in Ericsson, Sweden, and Nokia, Finland, two of its major rivals in the telecommunications equipment market. To gain leadership in the 5G deployment in Brazil, the two companies are currently competing.

Ericsson and Nokia did not respond to media requests for comment on Huaweis entry into the Brazilian market. (Tianmen Mountain)

Source: Responsible Editor of Netease Science and Technology Report: Wang Fengzhi_NT2541