Report: Google moving Pixel production from Vietnam to India

Google seems to be moving production of its Pixel devices from Vietnam to India to incur the least amount of tariffs. The company reportedly held discussions with its manufacturing partners in India for the production of Pixel devices that will be sold in the US. The company has already moved its manufacturing once before from China to Vietnam but that was back in 2019.

The latest tariff threats bring 145% on goods imported into the US from China and 45% on goods coming from Vietnam. On the other hand, goods coming from India are subject to a much lower 26% tariff, making the country a more viable production hub. Google already makes a chunk of its Pixel devices in India, around 43,000 to 45,000 for the local market, according to the report by The Economic Times (via 9to5Google). 

This would mean that India will manufacture a lot more units including ones that will be shipped to the US. Even though there is a 90 day pause on the tariffs on phones and computers, Google seems to want to get ahead of the uncertainty.

Furthermore, many components used in the Pixel devices like enclosures, fingerprint sensors, batteries, and chargers are still made in China. Google is therefore looking to localize their production in India as well. The search giant started manufacturing Pixel phones in India in August 2024 and the Pixel 8 was the first phone to be manufactured in the country. Now, it looks like a greater assortment of Pixel phones will be manufactured and sold in India, which, with the localization of components, should lead to lower costs.