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China’s Huawei To Construct New Factory In Brazil, Investing $800 Million

Governor of Sao Paulo, João Doria, stated that in the next 3 Years Huawei Technologies will be constructing an $800 Million factory. This move by the Chinese tech giant is supposed to help boost its presence in Latin America against U.S. objections. On a visit to China this week, Doria, along with executives from Huawei, stated that to meet the probable demand after Brazil’s foremost 5G spectrum auction planned for March 2020, Huawei is planning to build this new plant.

Huawei told Reuters in an email that the production of smartphones will be carried out in the new factory. “In the near future, Huawei might consider constructing a plant in Sao Paulo on the basis of performance of the smartphone operation in the regional market,” the firm added in a statement. The Sao Paulo Government highlighted that the production would be for regional and foreign markets.

Huawei, which is functional in Brazil from the last 21 Years, already has one plant in Sao Paulo state that produces equipment for telecoms infrastructure, with approximately 2,000 staff members. The location of a new factory—which will offer employment for approximately 1,000 people—will be finalized in the upcoming months.

Reportedly, the firm will invest approximately $800 Million over a period of three years after the future 5G auction. In April, in its second attempt to crack the smartphone market in Brazil, Huawei launched two high-end handsets and hired regional people for the management of the business.

On a similar note, recently, Donald Trump, the U.S. President, announced that now America will stop doing business with Huawei. According to the Trump administration, if the state-controlled firm is offered access on 5G, it might risk America’s national security. While denying Huawei’s access inside the country, the U.S. is also asking other countries to do the same and ban the firm.

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