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August 29, 2019 12:03 am

Google To Shift Pixel Smartphone Production From China To Vietnam

According to Nikkei Asian Review, Google is shifting production of its Pixel smartphone from China to Vietnam "as it seeks to build a low-cost supply chain in Southeast Asia that will serve as a springboard for its growing hardware ambitions." From the report: Working with a partner, Google started work this summer to convert an old Nokia factory in the northern Vietnamese province of Bac Ninh to handle production of Pixel phones, two people familiar with the company's plans said. This is the same province where Samsung developed its smartphone supply chain a decade ago, so Google will have access to an experienced workforce. The push to develop a Vietnamese production base reflects the twin pressures of higher Chinese labor costs and the spiraling tariffs resulting from the trade war between Washington and Beijing. The U.S. internet giant intends to eventually move production of most of its American-bound hardware outside of China, including Pixel phones and its popular smart speaker, Google Home, according to the sources. Under current plans, Google will shift some production of the Pixel 3A phone from China to Vietnam before the end of this year, the people said. For its smart speakers, some production is likely to be moved to Thailand, sources said. But the company's new product development and initial production for its hardware lineup will still be in China, they said. "Google are likely to keep some activities inside China. The U.S. company knows that if it is going to be serious about making hardware, it could never give up the massive Chinese market," one of the sources said. "However, they also understand that, due to rising costs and the macro-environment, they need to have production outside China for the long term in order to support their hardware manufacturing."

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