Alphabet Inc., the parent company of Google, is reportedly in talks with contract manufacturers Dixon Technologies and Foxconn to relocate a portion of its global Pixel smartphone production from Vietnam to India. The move aims to cater to US-bound shipments and reflects Alphabet&rsquo;s broader strategy to diversify its manufacturing base, according to a report by The Economic Times.
The initial round of discussions took place around two weeks ago and comes amid concerns over potential US tariff hikes on Vietnamese imports. The US administration, under President Donald Trump, has proposed tariffs of up to 46% on Vietnamese goods, compared to 26% on those from India. Although a 90-day pause on reciprocal tariffs was announced on April 9, a baseline 10% tariff remains. Notably, China continues to face a steep 145% tariff, having been excluded from the deferment.
As part of its strategy, Alphabet is also looking to localise key components in India, including fingerprint sensors, batteries, chargers, and enclosures. Currently, most components used in Pixel assembly within India are imported. The localisation move is aimed at reducing costs and boosting competitiveness.
At present, Dixon and Foxconn produce approximately 43,000 to 45,000 Pixel smartphones monthly in India, solely for domestic sales. This initiative helps Alphabet navigate India&rsquo;s import duties, which total about 16.5%, and strengthens its position against rivals like Apple and Samsung in the premium smartphone segment.
Foxconn began assembling older Pixel models at its Tamil Nadu plant in August 2024, while Dixon, in collaboration with Taiwan&rsquo;s Compal Electronics, started production in December at its Noida facility. Dixon now accounts for 65&ndash;70% of all Pixel units manufactured in India, including the latest generation.
Although Alphabet originally planned to develop India into a global manufacturing hub for Pixel over two to three years, evolving geopolitical and trade dynamics have accelerated the timeline. In addition to India and Vietnam, some Pixel production continues in China.
Alphabet had moved Pixel production to Vietnam in 2023 to reduce its reliance on China, with nearly half of its premium Pixel models assembled there last year. However, the shifting trade landscape is prompting the tech giant to recalibrate its global supply chain.
Looking ahead, Alphabet intends to gradually ramp up Pixel exports from India to the US and is also exploring opportunities to serve additional international markets from its Indian facilities.
Meanwhile, India is actively negotiating a trade agreement with the US, aiming to boost bilateral trade from $190 billion to $500 billion by 2030. A favourable deal could further incentivise American tech giants like Alphabet and Apple to expand their manufacturing operations in India.
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Source : Business-standard

Alphabet Inc., the parent company of Google, is reportedly in talks with contract manufacturers Dixon Technologies and Foxconn to relocate a portion of its global Pixel smartphone production from Vietnam to India.

Alphabet Considers Shifting Pixel Smartphone Production to India Amid US Tariff Concerns