Google Parent In Talks To Shift Pixel Smartphone Production To India: Report

Alphabet, the parent entity of Google, is reportedly in advanced talks to shift a portion of its Pixel smartphone production from Vietnam to India.

An ET report, citing industry sources, said that Alphabet has already completed the first round of discussion with its contract manufacturers Dixon Technologies and Foxconn a fortnight ago.

Two industry executives have also told the publication that the company is also planning to localise the production of some components of the smartphone which includes enclosures, chargers, fingerprint sensors and batteries. Currently, most components are imported from the US.

The move comes as the Pixel maker plans to derisk its sourcing since president Donald Trump levied high tariffs on Vietnam.

While the US announced a tariff of 46% on goods from Vietnam, India faces a much lower of 26% rate. Though Trump announced a 90-day pause on reciprocal tariffs on April 9, the 10% baseline tariffs still continue to hold. But there was no respite for China.

While other nations were exempted from the reciprocal tariff regime, the Trump-led government continued to uphold the 145% tariff on the Asian economic giant since it showed retaliation to the reciprocal tariff regime by the US.

The company revealed its plans to manufacture its Pixel 8 series smartphones in India back in 2023 and a year later kickstarted its production by inking a pact with local contract manufacturer Dixon Technologies. The global tech giant initiated its talks with Foxconn to manufacture its series 8 Pixel devices last year.

To be sure, the current move will beef the manufacturing of Pixel smartphones in India. At the time when Google partnered with Dixon, it was decided that the contract manufacturer will make one Lakh units of Pixel smartphones in the country every month and about 25%-30% will be exported.

The ET report says that Foxconn has been manufacturing 43,000 to 45,000 units every month for Alphabet.

The development comes at a time when rival Apple is also looking to double down the production of Iphones in India. Foxconn, which is the contract manufacturer for iPhone in India, is looking to increase the manufacturing of iPhones to 25 Mn units from 12 Mn units.

The electronic manufacturing space is on its way to become a huge opportunity in the country. Currently about 33 Cr mobile phones are manufactured in the country.

As per Economic Survey 2024-25, India has reduced its dependency on imports of smartphones since 99% of them are manufactured in India itself.