Taiwan Foxconn Technology Group has decided to build a new plant in Jundiai, an inland city in Sao Paulo, Brazil, for the assembly of Apple’s iPad and iPhone products.

Brazilian Science and Technology Minister Aloizio Mercadante also confirmed the news to Brazil’s local media.

A delegation from Foxconn will soon arrive in Brazil to release more details about the construction of the new factory. Apart from the assembly of iPads and iPhones, the new plant may also produce computer screens.

Foxconn will reportedly invest USD12 billion in the new plant and the company’s main demand is that the Brazilian government will allow iPhones and iPads to enjoy the same preferential tax treatment as computers and laptops.

According to reports in local media, electronic components for Apple products have already been shipped to the warehouses in the FazGran industrial area, which is in the suburb of Jundiai.

Foxconn declined to comment on the news.