Google intends to relocate production of all Pixel smartphones, smartwatches, and wireless earbuds from China beginning in 2027 as it continues to diversify its supply chain amid tensions between China and the U.S., reports Nikkei.
Google’s EMS and ODM partners — such as Compal, Foxconn, and Pegatron — have significantly expanded manufacturing capacity in India and Vietnam in recent years. In a bid to reduce reliance on China, Google reportedly shifted production of some of its high-end Pixel smartphones to Vietnam this year and remained satisfied with the outcome.
Since building premium handsets is considerably more complicated than assembling smartwatches or wireless earbuds, the progress with Pixel phones reportedly gave Google confidence that it could shift the rest of the lineup out of China in 2027. If the plan materializes, Google will become the second global smartphone brand after Samsung to relocate smartphone production from China to other countries.
Why Vietnam and India?
Vietnam is particularly attractive for Google because Samsung has already established an extensive smartphone manufacturing ecosystem in the country that Google can tap into.
India also offers growing manufacturing infrastructure and incentives for electronics production. Rising labor and regulatory costs in China, combined with attractive incentives and growing manufacturing ecosystems in places like India and Vietnam, further encourage diversification.
The China Factor
Google has considerably fewer reasons than Apple to preserve its Chinese manufacturing footprint because Pixel smartphones are by far not as popular as iPhones and are also not sold in China. Google expects Pixel smartphone shipments to grow by 8%–10% from approximately 12 million units last year, which is an order of magnitude lower compared to iPhone sales per annum.
Consumer electronics brands like Apple and Google are shifting production away from China primarily due to escalating China–U.S. geopolitical tensions, which result in punitive tariffs, export controls, and the risk of sudden disruptions. As an added bonus, adding production capacities in countries like India and Vietnam automatically improves supply-chain resilience and reduces over-reliance on a single country.
The Challenge Ahead
Despite rising component costs, Google’s strategy for Pixel this year is reportedly focused on maintaining unit shipment growth. A supplier working with Google and Xiaomi reportedly told Nikkei that Google is among the few smartphone vendors that have not reduced their shipment forecasts this year, which is not particularly surprising as its unit sales are modest.
Yet, it remains to be seen whether the company can both relocate production and increase output of handsets at the same time. Meanwhile, companies like Foxconn or Pegatron do not abandon their China operations and continue to build products not meant for the U.S. market there.
The Bottom Line
Google plans to relocate production of all Pixel smartphones, smartwatches, and wireless earbuds from China to India and Vietnam by 2027. The move comes amid rising US-China tensions and follows successful test production of high-end Pixel phones in Vietnam. Google will become the second major smartphone brand after Samsung to shift production out of China. The company faces the challenge of relocating manufacturing while maintaining shipment growth
