Google (NASDAQ:GOOGL) is preparing to end production of its Pixel smartphones, smartwatches and wireless earbuds in China from 2027, with manufacturing set to shift to Vietnam and India, according to a report from Nikkei Asia on Tuesday.
The planned relocation forms part of Google’s efforts to diversify its supply chain and reduce its manufacturing exposure to China as tensions between Washington and Beijing continue to affect the global technology industry.
Vietnam Production Gives Google Confidence to Accelerate Shift
Google has informed suppliers that it intends to manufacture all Pixel devices outside China beginning next year, Nikkei reported.
The company’s successful production of high-end Pixel smartphones in Vietnam during 2026 has reportedly given management greater confidence that its manufacturing network can support the transition within the proposed timeframe.
If completed, the move would make Google the second major international smartphone brand after Samsung Electronics (KS:005930) to shift production away from China, according to the report.
The strategy would also deepen Google’s reliance on Vietnam and India as alternative manufacturing centres for its consumer hardware portfolio.
Pixel Smartphone Shipments Expected to Increase
The planned supply-chain overhaul comes as Google targets further growth for its Pixel smartphone business.
The company intends to increase Pixel shipments by between 8% and 10% this year from approximately 12 million units in 2025, according to Nikkei.
That expansion is being pursued despite a sharp increase in memory-chip costs, which has created additional pressure for smartphone manufacturers and other technology companies reliant on semiconductor components.
Google Combines Chip Orders to Strengthen Supplier Negotiations
Google is also reportedly combining memory-chip purchases for its smartphones with orders required by its cloud computing operations.
The strategy is designed to increase the scale of its procurement and strengthen its negotiating position with major memory suppliers, including Micron Technology (NASDAQ:MU), Samsung (USOTC:SSNHZ) and SK Hynix (NASDAQ:SKHY).
By consolidating demand across its hardware and cloud businesses, Google could potentially secure more favourable terms as competition for memory components intensifies.
The combination of higher Pixel shipments, manufacturing diversification and a more coordinated semiconductor procurement strategy highlights Google’s efforts to strengthen its hardware supply chain while reducing dependence on China.
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