Google Pivots Pixel Production Out of China Amidst Memory Chip Shortage

Google is reportedly shifting all manufacturing of its Pixel devices out of China by 2027. The tech giant has already started moving production to Vietnam and India, with plans to increase shipments of Pixel phones by 8% to 10% this year.

The move comes as Google looks to promote consumer usage of its Gemini artificial intelligence (AI) tools. The company is also addressing the ongoing shortage of memory chips caused by the AI buildout of data centers and cloud services, which has affected companies across the tech sector.

By combining orders for phone memory chips with those for its AI and cloud businesses, Google aims to enhance its negotiating position with major suppliers of memory chips. This could potentially lead to improved terms for its memory chip purchases across its business lines.