Taiwan-based Foxconn is rumored to have plans to build five new factories in Brazil to produce iPads. The factories are expected to have about 1,000 employees each and are in addition to the already announced plant to produce liquid crystal displays.

The Secretary of Planning and Development of the State of São Paulo, Julio Semeghini, was reported by Folhua.com as saying that the factories will be producing components for notebooks and PCs including electronics, connectors, batteries, and precision machine elements. These parts will include components for assembly into iPads, which are currently being imported into Brazil.

The exact locations are still up for negotiation and Brazilian authorities are awaiting Foxconn executives to return from Chinese New Year celebrations to continue discussions. Investments are expected to be in the “hundreds of thousands of dollars,” though that number could well be a misquote. Modern manufacturing facilities can easily cost a billion dollars U.S. or more.

Brazil has extended several tax breaks to entice the production of tablets to that country, including exemption or reduction of the excise tax and breaks for companies investing technology product’s research and development, among others. Various locations within Brazil are vying for the investment, but it appears São Paulo is the favorite.

Foxconn has not yet confirmed these new factories.

Thanks to AppleInsider for the heads up on this story.