Alphabet Inc., the parent company of Google, is reportedly considering relocating a significant portion of its global Pixel smartphone production to India. The move, which involves preliminary discussions with Indian contract manufacturers Dixon Technologies and Foxconn, is said to be aimed at catering to the US market amid growing tariff concerns on Vietnamese imports.
According to a report published by The Economic Times, the first round of talks between Alphabet and the two manufacturers occurred roughly a fortnight ago. The development is part of Alphabet’s broader strategy to diversify its manufacturing footprint and reduce over-reliance on Vietnam, which currently serves as the main production hub for its flagship Pixel devices.
US tariffs prompt reassessment of supply chains
The potential shift is driven by new US trade measures targeting Vietnamese goods. Under the administration of President Donald Trump, the United States has proposed tariffs of up to 46 per cent on imports from Vietnam. In contrast, goods from India are subject to a lower duty rate of 26 per cent, making India a more commercially viable option for Alphabet’s US-bound shipments.
Although a 90-day reprieve on retaliatory tariffs was announced on 9 April, a 10 per cent base tariff on Vietnamese imports remains intact. Significantly, China, another major electronics manufacturing hub, continues to face a daunting 145 per cent tariff and was excluded from the pause – further complicating Alphabet’s supply chain planning.
Focus on component localisation
In a bid to enhance cost-effectiveness and tap into India’s growing electronics ecosystem, Alphabet has also floated plans to localise critical components such as fingerprint sensors, batteries, chargers, and enclosures. At present, most parts used in Pixel phones assembled in India are sourced from abroad. Increased localisation would not only cut production costs but also align with the Indian government’s push for self-reliant manufacturing under its “Make in India” initiative.
The move comes as New Delhi and Washington accelerate efforts to cement the first phase of a new trade agreement, anticipated by September or October. The two nations have set an ambitious target to boost bilateral trade from $190 billion to $500 billion by 2030. A more favourable trade framework would further encourage US tech giants like Alphabet and Apple to expand their manufacturing base in India for exports.
Pixel manufacturing in India
Currently, India-based production of Pixel smartphones is relatively modest and focused solely on the domestic market. Dixon Technologies and Foxconn jointly manufacture between 43,000 and 45,000 units each month. These efforts help Alphabet navigate India’s steep import tariffs—amounting to approximately 16.5 per cent on smartphones—and compete more effectively in the premium segment against Apple and Samsung.
Foxconn began assembling Pixel devices at its Tamil Nadu facility in August 2023, initially focusing on previous-generation models. Meanwhile, Dixon, through a partnership with Taiwan’s Compal Electronics, started production at its Noida plant in December. Dixon is now responsible for producing 65–70 per cent of all Pixel handsets made in India, including the latest models.
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Although Alphabet originally envisaged transforming India into a global hub for Pixel manufacturing over a two to three-year horizon, ongoing geopolitical and trade pressures appear to have accelerated this timeline.
Expanding global supply potential
Before this shift, Google had pivoted Pixel production from China to Vietnam in 2023, chiefly through partnerships with Foxconn and Compal. Reports suggest that nearly half of all premium Pixel devices sold last year were assembled in Vietnam. However, the looming tariff barriers now threaten the viability of that model.
An executive familiar with the discussions confirmed that Alphabet intends to incrementally increase exports of Pixel smartphones from India to the United States. The company is also weighing the possibility of serving additional international markets from its Indian facilities.
As Alphabet seeks to future-proof its supply chain, India is emerging as a critical node in the global technology manufacturing network. If the shift materialises as planned, it would mark a major milestone in India’s ascent as a preferred destination for high-end electronics production.
