Earlier this year news broke that Foxconn will open a factory for Apple iPads in Brazil. The factory was supposed to start up pretty soon. Now Reuters reports that Foxconn and the Brazilian government do not agree on tax breaks. Additionally Brazil has deep structural issues and there is a lack of skilled labor. The last two things Foxconn should have known before the made a plan to produce in Brazil.
According to the report the launch date of the Foxconn iPad factory in Brazil is now up in the air.
There is no official statement from Foxconn available yet.
I do not think that this will lead to supply issues as Foxconn should have still enough resources in Asia to produce the iPad 2.