2 weeks Ago By Priya Singh
Alphabet Inc., Google's parent company, has initiated talks with Indian manufacturers Dixon Technologies and Foxconn to shift part of its global Pixel smartphone production from Vietnam to India, targeting U.S.
-bound shipments, reported The Economic Times. The discussions, which began about two weeks ago, are part of Alphabet's broader strategy to diversify its manufacturing operations and reduce reliance on Vietnam in response to potential U.S.
tariff hikes. 🚨Google plans to shift production of pixel smartphones from its primary production base Vietnam to India 🇮🇳 🔹Talks on with Dixon Tech & Foxconn 🔹Focus on devices with US export tag 🔹Plans of components manufacturing ➡️ Dixon produces 65-70% of Pixel devices in India..
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com/8FShWRdz5L — Noida_Updates (@NoidaUpdatesX) April 22, 2025 Alphabet's move to explore Pixel smartphone production in India is driven by the looming threat of steep U.S. tariffs on Vietnamese imports, which could go as high as 46%.
Vietnam, currently the primary production hub for Pixel devices, faces higher tariff risks compared to India, where the rate stands at 26%. Although a 90-day pause on some reciprocal tariffs was announced on April 9, a baseline 10% tariff remains. Meanwhile, China—another major manufacturing base—continues to face a much steeper 145% tariff, further motivating Alphabet to diversify its production strategy.
ALSO SEE: Microsoft Cracks Down On Low Performers With New Exit Strategy: Check Details Alphabet plans to localize key Pixel components in India—such as fingerprint sensors, batteries, chargers, and enclosures—to cut costs and enhance competitiveness, as most parts are currently imported. This push aligns with India’s broader trade ambitions, as it accelerates negotiations with the U.S.
to finalize the first phase of a trade deal by September or October. With a goal to boost bilateral trade from $190 billion to $500 billion by 2030, a favorable trade framework could further encourage American tech giants like Alphabet and Apple to expand manufacturing operations in India for U.S.
-bound exports. Alphabet in Talks to Ramp Up Pixel Production in India https://t.co/nZvTDj6tg1 Download Economic Times App to stay updated with Business News - https://t.
co/buZYtZQ8UP pic.twitter.com/uaQ1KLbPr8 — SanthanamVaidya (@sanvai) April 22, 2025 For the unversed, currently, Dixon and Foxconn manufacture around 43,000 to 45,000 Pixel smartphones per month in India, solely for domestic sales, to avoid India’s 16.
5% import duties and compete more effectively with Apple and Samsung in the premium segment. Foxconn began assembling older Pixel models in Tamil Nadu in August 2023, while Dixon, in partnership with Compal Electronics, started production in Noida in December and now accounts for 65–70% of India-made Pixel units, including the latest models. Although Alphabet originally planned a gradual build-up of India as a global Pixel hub over two to three years, recent geopolitical and trade shifts have sped up this timeline.
While Vietnam—Alphabet’s main production base since 2023—and China still contribute to global Pixel assembly, the company is now preparing to ramp up Pixel exports from India to the U.S. and explore other international markets.
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