Google is reportedly preparing to shift manufacturing of its Pixel smartphones and other hardware products away from China, as the company continues to expand production in India and Vietnam.
According to a report by Nikkei Asia, Google has told its suppliers that it plans to move production of all Pixel phones, smartwatches and wireless earbuds out of China starting next year. The company is targeting 2027 to complete the transition.
The planned manufacturing shift comes as Google seeks to diversify its supply chain amid ongoing tensions between the US and China.
The company has been increasing its manufacturing capabilities in Vietnam and India in recent years as part of efforts to reduce its reliance on China. However, a significant portion of Pixel production continues to take place there.
Google does not sell Pixel smartphones in China, which could make it easier for the company to move production without having to maintain a manufacturing base there for its Chinese market.
Vietnam is expected to play a key role in Google's manufacturing plans. The company began developing and producing its high-end Pixel smartphones in Vietnam this year.
Producing premium smartphones is considered more complicated than manufacturing products such as smartwatches and wireless earbuds. The successful expansion of high-end Pixel production in Vietnam has reportedly encouraged Google to consider moving its entire Pixel manufacturing operation out of China.
If the plan goes ahead, Vietnam could eventually become the main manufacturing base for Pixel phones.
The shift would potentially make Google the second major global smartphone brand after Samsung to completely move its smartphone production away from China.
Apple has also increased iPhone production in India through its manufacturing partners. However, the company continues to manufacture some devices in China.
The manufacturing changes come as Google is looking to increase Pixel sales. The company reportedly expects Pixel shipments to rise by 8-10% this year from around 12 million units last year.
Google is pursuing this growth despite rising memory chip costs, with the company keen to maintain momentum for its 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.
Google has been seeing strong growth in India, particularly in the premium smartphone segment.
According to Counterpoint Research, Google is currently the fastest-growing brand in India's premium smartphone market. The company's increased focus on manufacturing in India also comes as it seeks to expand its presence in the country.