Google is preparing to move production of its Pixel smartphones, watches and wireless earbuds entirely out of China as the company expands manufacturing capacity in Vietnam and India and seeks to reduce its reliance on Chinese factories.
By yourNEWS Media Newsroom
Google is preparing for a major restructuring of its hardware supply chain, with plans to produce its Pixel smartphones and other consumer devices entirely outside China, according to Nikkei Asia.
The shift would encompass Pixel smartphones, smartwatches and wireless earbuds as Google continues expanding manufacturing capacity in Vietnam and India.
The company has already successfully developed and produced Pixel phones in Vietnam, providing a foundation for the broader move away from Chinese production.
If the transition is completed, Google would become the second major global smartphone brand after Samsung to stop manufacturing smartphones in China.
The planned manufacturing shift comes as Google is simultaneously seeking to accelerate Pixel sales.
Sources told Nikkei that Pixel shipments are expected to increase between 8% and 10% this year compared with approximately 12 million units shipped last year.
Google also views expanding Pixel adoption as a way to increase usage of its Gemini artificial intelligence platform, according to the report.
One source described the company’s current Pixel strategy in unusually aggressive terms.
“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,” the source told Nikkei.
A parts supplier executive said Google is among the relatively small number of smartphone manufacturers that have not reduced their shipment forecasts this year.
The planned departure from Chinese Pixel manufacturing comes amid a wider reorganization by major U.S. technology companies seeking to reduce their exposure to China as tensions between Beijing and Washington continue.
Microsoft has significantly reduced its presence in the country over the past five years.
Corporate filings show that at least 15 Microsoft branch offices and joint ventures in China have closed during that period. Five company sources have described Microsoft’s broader approach as a strategy of retreat.
Apple is pursuing its own supply-chain diversification.
The company plans to manufacture in India most of the iPhones it sells to American customers by the end of 2026.
Tesla has also faced questions about its future operations in China, although CEO Elon Musk last month denied reports that the electric-vehicle company was considering separating its China business.
The changing strategies of U.S. technology companies come as China has spent years encouraging government agencies and other users to adopt domestically produced software.
Since 2017, Beijing has promoted Chinese alternatives to foreign software, arguing that domestic products offer greater security while becoming increasingly competitive with products such as Microsoft Windows and Office.
Google’s planned Pixel manufacturing transition reflects both that changing geopolitical environment and the company’s own effort to expand its hardware business.
Vietnam has emerged as an increasingly important part of that strategy after successfully handling Pixel development and production, while India is also receiving additional manufacturing investment.
At the same time, Google intends to keep Pixel shipment growth moving upward rather than scaling back expectations amid broader pressure in the smartphone market.
With shipments expected to rise from last year’s 12 million units and Gemini AI becoming a larger part of the company’s consumer strategy, Google is positioning Pixel devices as both a growing hardware business and a distribution channel for its artificial intelligence services.
The planned exit from Chinese smartphone production would therefore mark more than a factory relocation. It would further reduce Google’s dependence on China while placing Vietnam and India at the center of the company’s future Pixel supply chain.
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