Google Shifts Pixel Production Out of China Amid Trade Tensions

Alphabet's (GOOGL) Google is moving its Pixel smartphone production out of China by 2027, relocating manufacturing to Vietnam and India. The move follows Samsung's lead in exiting Chinese production.

The tech giant aims to have zero Pixel devices produced in China starting from next year, as part of a broader strategy to minimize supply chain vulnerability due to ongoing trade tensions between the US and China.

Google has been expanding its production infrastructure in Vietnam and India in anticipation of this transition. The company forecasts an 8-10% annual increase in Pixel unit shipments, building on last year's 12 million units delivered.

To counter rising memory chip prices, Google is consolidating chip procurement across its cloud and mobile divisions, strengthening its negotiating leverage with suppliers like Micron Technology, Samsung, and SK Hynix.