Alphabet, the parent company of Google, is mulling to move a portion of global Pixel smartphone production from Vietnam to India. The tech giant has begun discussions with its contract manufacturing partners in India—Dixon Technologies and Foxconn. The move is aimed at fulfilling US-bound shipments and high US tariffs announced on Vietnam, with the first round of talks between Alphabet and the two manufacturers taking place approximately two weeks ago.
The discussions underscore Alphabet’s broader strategy to diversify its manufacturing base and reduce dependency on Vietnam amid potential tariff hikes by the United States.
The strategic shift is being driven by the threat of steep tariffs on Vietnamese goods.
Vietnam currently serves as the main hub for Pixel production. However, the US administration, under President Donald Trump, announced tariffs as high as 46 per cent on Vietnamese imports, compared with 26 per cent for goods from India.
Despite declaring a 90-day pause on reciprocal tariffs on April 9, a 10 per cent baseline tariff remains in place. Notably, China, another major electronics manufacturing base, was excluded from the deferment and continues to face a 145 per cent tariff.
Besides, Alphabet has also shared plans to localise key components in India, including fingerprint sensors, batteries, chargers, and enclosures. As of now, most components used in Pixel phones assembled in India are imported. The intent is to reduce costs and increase competitiveness by tapping into local sourcing, the news report said.
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