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Date: 22-apr-2025
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Amid rising global trade tensions and evolving tariff regulations, Alphabet Inc., the parent company of Google, is actively considering shifting a large portion of its Pixel smartphone production from Vietnam to India. This move is part of the company’s broader effort to diversify its manufacturing footprint and mitigate risks stemming from escalating U.S. tariffs on imports from Vietnam.
The strategic reallocation comes as the U.S. government, under the Trump administration, continues to impose high tariffs on Vietnamese electronics—up to 46%—compared to a lower rate of 26% on imports from India. Though a 90-day pause on reciprocal duties was announced earlier this month, a baseline 10% tariff still applies, pushing manufacturers to rethink their long-term sourcing strategies.
Google has already begun assembling Pixel devices in India through two major contract manufacturing partners: Dixon Technologies and Foxconn.
Currently, between 43,000 and 45,000 Pixel phones are produced monthly in India. Dixon handles about 65–70% of this capacity, including newer Pixel models, while Foxconn manages older versions.
Alphabet’s interest in shifting production to India is driven by several key factors:
In addition to assembling phones in India, Google is pushing for more localization of components such as batteries, fingerprint sensors, and enclosures. This move aims to reduce dependence on imports, lower production costs, and create a more resilient and self-sufficient supply chain within the region.
While most Pixel parts are currently imported into India, talks are underway to establish local suppliers and component vendors, particularly for high-volume parts like chargers and power packs.
This shift aligns with broader trade developments. The Indian government is in advanced negotiations with the U.S. to finalize a new bilateral trade framework, expected to be signed between September and October 2025. This agreement could pave the way for higher electronics exports from India and further incentivize companies like Google and Apple to deepen their local manufacturing footprint.
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