April 23, 2025 – The ongoing tariff situation in the United States is compelling companies to devise strategies aimed at mitigating the impact on products shipped to the country, and even tech giants like Google are not immune. In an effort to sidestep hefty tariffs, Google is reportedly contemplating relocating the production of its Pixel phones from Vietnam.
For a considerable period, Vietnam has served as the manufacturing hub for Pixel phones. However, Google is now said to be exploring alternative locations. According to Economic Times, the company is evaluating the feasibility of shifting its production operations from Vietnam to India and has initiated preliminary discussions with Indian manufacturing partners Dixon Technologies and Foxconn, with the intention of transferring a portion of its supply chain to the Indian subcontinent. While Google cannot entirely escape the effects of tariffs, this move is expected to aid in cost reduction.
Previously, Vietnam was subjected to a 46% tariff on goods imposed by the Trump administration, although the tariff was subsequently suspended for a 90 – day period. In contrast, India currently has a tariff rate of 26%. If the tariff is not eliminated or the suspension period is not extended, India could emerge as a more appealing production site.
Moreover, Google intends to source critical Pixel components locally in India to further cut costs. As per statements from relevant executives, the company has engaged in talks with contract manufacturers regarding the local production of components such as casings, chargers, fingerprint sensors, and batteries in India. At present, the majority of Pixel phone components produced in India still rely on imports.
Per the report, Foxconn and Dixon are currently manufacturing approximately 43,000 to 45,000 Pixel phones per month in India, primarily for the domestic Indian market.
