From Vietnam to India: Alphabet Rethinks Pixel Production for US Market

Alphabet Inc. is exploring plans to shift part of its Google Pixel smartphone production from Vietnam to India, in an effort to mitigate potential risks from future U.S. tariffs.

The company has initiated discussions with Indian contract manufacturers Dixon Technologies and Foxconn to relocate assembly lines that serve the U.S. market. These talks began approximately two weeks ago.

In addition to assembly, Alphabet is advocating for local production of key components—such as chargers, fingerprint sensors, enclosures, and batteries—which are currently imported. This move supports India's ambitions to grow its domestic electronics manufacturing sector and increase exports, aligning with the broader U.S.-India goal of reaching $500 billion in bilateral trade by 2030.

Currently, Foxconn and Dixon produce around 43,000 to 45,000 Pixel units per month in India, primarily for local consumption. The proposed expansion could significantly elevate India's role in Alphabet’s global supply chain.

News by Rahul Yelligetti.