Google may ditch China for Pixel production — what it means for India

Google is reportedly preparing to move production of its Pixel smartphones, smartwatches and wireless earbuds out of China, with India and Vietnam expected to gain from the planned supply-chain shift.

According to a report by Nikkei Asia cited by Mint, Google has told suppliers that it wants to begin moving production of all Pixel phones and other hardware products out of China from next year, with the transition targeted for completion by 2027.

Vietnam could become Pixel's main production hub

Vietnam is expected to play a major role in Google's plans. The company started developing and manufacturing its high-end Pixel smartphones in the country this year.

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The move is significant because premium smartphones require more complex manufacturing processes than products such as earbuds and smartwatches. The reported expansion of high-end Pixel production in Vietnam has encouraged Google to consider shifting its entire smartphone manufacturing operation out of China.

If the plan proceeds, Vietnam could eventually emerge as the main production base for Pixel phones.

Google's decision comes as global technology companies continue to diversify their supply chains amid tensions between the US and China. Google also does not sell Pixel smartphones in China, potentially making the production shift easier.

India also in focus as Pixel production expands

India is another important part of Google's manufacturing strategy. The company has been expanding production in the country as it looks to reduce its dependence on China.

The shift could also support Google's growing ambitions in India's premium smartphone market. Counterpoint Research has identified Google as the fastest-growing brand in the segment in India.

Google's move would follow Samsung's exit from smartphone manufacturing in China. Apple, meanwhile, has expanded iPhone production in India through manufacturing partners, although it continues to make some devices in China.

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Google wants faster Pixel growth

The reported manufacturing plans come as Google targets higher Pixel shipments. The company expects shipments to grow 8-10% this year from around 12 million units last year, despite increasing memory chip costs.

The push is particularly important for Google's upcoming Pixel 11 range.

"The strategy for the Pixel phone this year is: Attack. We are told Pixel phones need to keep their shipment growth momentum at all costs,” a person quoted in the report said.