The investment comes amid expanding the presence of the Chinese telecommunications group in Latin America, to counteract US problems.
The factory will have 1,000 employees and will likely produce smartphones and telecommunications equipment, to meet demand following the 5G technology frequency bid, due in March 2020 in Brazil.
“Depending on the evolution of smartphone sales in the local market, Huawei will consider building a unit in Sao Paulo shortly,” a Chinese company statement said.
Huawei, which has been present in the Brazilian market for 21 years, already has a factory in the state of Sao Paulo, with 2,000 employees, where equipment for telecommunication infrastructure is produced.
Huawei is the world’s largest telecommunications equipment manufacturer and the world’s second-largest smartphone maker.
For the Brazilian market, Huawei imports devices from China, but the costs would be lower if they were manufactured locally.
Other global suppliers of 5G network equipment with factories in the state of Sao Paulo are Ericsson (Sweden) and Nokia Oyj (Finland). The two companies did not want to comment on Huawei’s intention to expand into the Brazilian market.
Amid tensions with Beijing, US President Donald Trump has banned US groups from conducting telecommunications trade with foreign companies deemed to be dangerous to national security, a measure that targets in particular Huawei, the Chinese telecommunications giant, considered “black sheep” by Washington