Google to Reportedly Shift Pixel Smartphone Development, Manufacturing Outside of China

Google is reportedly planning to shift a significant portion of both development and manufacturing of its Pixel smartphones out of China. As per the report, the Mountain View-based tech giant has selected Vietnam as the new destination to carry out the production of its flagship-grade handsets. It is said that the relocation and production switch could start in the next few months, allowing the company to initiate and complete the manufacturing of the Pixel 11 series outside of China.

Google to Reportedly Shift Pixel Production to Vietnam

According to Nikkei Asia (via 9to5Google), the tech giant is planning to shift the entirety of its flagship series, including the base model, the Pixel Pro models, and the Pixel Fold, out of China. The shift marks a big change for the company, which has historically relied on Chinese partners for much of its smartphone engineering and assembly work. The move is expected to begin this year.

Google's manufacturing diversification is reportedly connected to the rise in geopolitical tensions, regulatory uncertainty, and supply chain disruptions that have increasingly affected electronics manufacturing in China. Additionally, after the US imposed higher tariff rates on the country, production is said to have started eating into the tech giant's margins.

Vietnam will reportedly not merely serve as a final assembly location. Instead, Google is expected to move portions of product development, including engineering and testing, to the country. A key part of the development cycle, new product introduction (NPI) will also occur there. Put simply, NPI is the first step in a production cycle where a large number of engineers representing the company and the supply chain get together and test whether a product design blueprint can be manufactured or not. If an NPI fails, the entire cycle restarts, resulting in delays.

While Google has previously shifted some Pixel production to countries such as Vietnam and India, those efforts were largely focused on assembly rather than full-scale development. Notably, Apple, Samsung, and several PC makers have expanded production in Southeast Asia in recent years, and the Pixel-maker appears to be following a similar path with its hardware business.

However, China is unlikely to be removed entirely from Google's Pixel supply chain in the near term. Google will reportedly continue the development and manufacturing of its A-series devices in the country.