2 weeks ago
Google to Move Pixel Manufacturing From China by 2027: Report
Google is a big technology company that makes phones called Pixel.
Right now, many Pixel phones, smartwatches and earbuds are built in China, but Google has decided to stop building them there.
The company plans to make all its Pixel devices in India and Vietnam instead, and wants to finish the move by 2027.
Moving production to more than one country helps companies stay safe if there are problems, like arguments between governments or new trade rules.
This year, Google successfully made its most advanced phones in Vietnam, which made the company confident it can complete the move.
If it does, Google will be the second big phone company after Samsung to leave China.
Google does not sell Pixel phones in China anyway, which makes the move easier.
Even though memory chips have become much more expensive, Google still wants to sell more phones next year.
Google hopes that people who buy Pixel phones will also use its AI helper called Gemini.
This is a big change for how phones are made and where they come from.
Google plans to move production of Pixel smartphones, smartwatches and wireless earbuds out of China starting next year, targeting completion by 2027, according to Nikkei Asia.
India and Vietnam are set to become Google's main production bases, with Vietnam expected to play a key role after high-end Pixel production succeeded there this year.
Google has told suppliers to expect Pixel shipments to rise 8-10 per cent this year from about 12 million units in 2025.
The shift reflects supply-chain diversification amid US-China tensions, and would make Google the second major smartphone brand after Samsung to fully move production out of China.
Google is combining memory orders for its cloud business with smartphone orders while negotiating with Micron, Samsung and SK Hynix amid sharply higher memory chip prices.
- Who
- Google, the US-based technology company; the plan was reported by Nikkei Asia citing people familiar with the matter.
- What
- Moving all Pixel manufacturing - smartphones, smartwatches and wireless earbuds - out of China, with India and Vietnam becoming the main production bases.
- Where
- Production shifting from China to India and Vietnam; key sales markets cited include the US, Japan and Europe, and Google does not sell Pixel phones in China.
- When
- Production is planned to start shifting next year, with completion targeted by 2027; Google expects 8-10 per cent shipment growth this year from about 12 million units in 2025.
- Why
- To diversify the supply chain amid US-China tensions, trade restrictions, rising component costs and growing pressure to control manufacturing risks, while maintaining Pixel growth to drive users to its Gemini AI services.
Backers of the China exit
Skeptics of the strategy
Timing of the manufacturing shift
Backers of the China exit
Diversifying production protects Google from US-China tensions, trade restrictions and single-country manufacturing risks, and Vietnam's successful high-end Pixel production proves the 2027 timeline is realistic.
Skeptics of the strategy
Completing the move out of China is risky and complex - premium phone production is harder than watches and earbuds - and a significant portion of Pixel production still depends on China.
Shipment growth amid higher chip costs
Backers of the China exit
Maintaining an 8-10 per cent shipment growth target is right because Pixel devices are a gateway to Gemini AI, and higher volumes strengthen Google's bargaining power with memory chip suppliers.
Skeptics of the strategy
Pursuing growth despite sharply higher memory chip prices is aggressive; Google is among the few makers that has not cut its target even as rivals revised forecasts downwards.
Pricing and market opportunity
Backers of the China exit
Google can gain market share in the US, Japan and Europe if Apple raises iPhone prices, and its price increases have been more conservative than Samsung's and Motorola's.
Skeptics of the strategy
Rising component costs are pushing prices up - the Pixel 11 starts at Rs 89,999 versus Rs 79,999 for the Pixel 10 - which could remain an important brake on customer demand.
Key facts
- Reported by
- Nikkei Asia, citing sources familiar with the matter
- Devices covered
- Pixel smartphones, smartwatches and wireless earbuds
- Target completion
- 2027
- New production hubs
- India and Vietnam
- Shipment growth target
- 8-10% this year from about 12 million units in 2025
- Memory suppliers in talks
- Micron, Samsung and SK Hynix
- Pixel 11 pricing
- Rs 89,999 for 256GB, versus Rs 79,999 for Pixel 10's 128GB base
- Industry context
- Google would be the second major smartphone brand after Samsung to shift production fully out of China; Apple, Huawei also target growth while Xiaomi, Oppo and Vivo cut forecasts
Quotes
Google component supplier executive
Executive of a supplier to Google
“The strategy for the Pixel phone this year is: Attack. We are told Pixel phones need to keep their shipment growth momentum at all costs.”
livemint.com
“The company was among the few smartphone makers that had not cut its shipment target for the year.”
thehansindia.com
Mitul Shah
Google India Managing Director
“India is not price sensitive, India is value sensitive”
businesstoday.in
Sources
Google plans to move Pixel production out of China by 2027: Report
Google may end Pixel production in China by 2027, India and Vietnam set to take over
Google to shift Pixel production to India by 2027 to reduce China dependency: All details
Google may shift Pixel, earbuds, and smartwatch production out of China by 2027. India, Vietnam to benefit?
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