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Google is reportedly moving forward with shifting all manufacturing of its Pixel devices outside of China starting in 2027.
The tech giant has previously made its Pixel phones, watches and earbuds in China – though that’s set to change next year, with Google informing suppliers that the production of those devices will move out of the country into Vietnam and India, according to a report from last week by Nikkei Asia.
The report cited a source who told the outlet that Google will be better-positioned to move production out of China than tech rival Apple because Pixel devices aren’t sold directly in the Chinese market, while it’s also a relatively small base of smartphone users.
Nikkei Asia previously reported in January that Google was planning to develop and manufacture Pixel 11 devices in Vietnam exclusively, with the process requiring investment in testing equipment as well as tooling machines. According to the latest report, the success of that process prompted Google to expand production for other Pixel devices in Vietnam.
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Google also reportedly told suppliers that it intends to increase shipments of Pixel phones by 8% to 10% this year after the company shipped 12 million Pixel phones a year ago.
The production boost comes against the backdrop of Google’s push to promote consumer usage of its Gemini artificial intelligence (AI) tools.
If Google proceeds with the move, it would follow Samsung in moving smartphone production out of China. Samsung’s production shifted out of China in a process that took over a year and concluded in 2019 with most of its manufacturing moving to Vietnam and India.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GOOGL | ALPHABET INC. | 348.06 | +3.24 | +0.94% |
The ongoing shortage of memory chips caused by the AI buildout of data centers and cloud services is affecting companies across the tech sector.
Google has reportedly looked to address that issue by combining orders for phone memory chips with those for its AI and cloud businesses.
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By doing so, the company is able to enhance its negotiating position with major suppliers of memory chips, potentially leading to improved terms for its memory chip purchases across its business lines.
FOX Business reached out to Google for comment.
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