Alphabet Inc., Google’s parent company, has started talks with its contract manufacturing partners in India—Dixon Technologies and Foxconn—to shift part of its global Pixel smartphone production from Vietnam to India.

The move aims to cater to US-bound shipments, as reported by The Economic Times. Talks between Alphabet and the two manufacturers started about two weeks ago, part of the company’s larger plan to diversify where it makes devices and cut its dependence on Vietnam in light of possible U.S. tariff increases.

Alphabet to Shift Pixel Production to India, Reducing Reliance on Vietnam Amid US Tariff Concerns

This shift has been nudged by the threat of punishing tariffs on goods from Vietnam. Right now, the country is the main center for Pixel assembly. But in the administration of President Donald Trump, the US levied tariffs of up to 46% on Vietnamese imports versus 26% on Indian goods. While a reciprocal tariff of 10% continues to be imposed as a baseline, a 90-day halt on implementing cross-border tariffs was announced on April 9. Notably, a major electronics manufacturing hub, China, was left off this pause and still has a 145 percent tariff.

Alphabet will also localize critical Pixel parts in India, such as fingerprint sensors, batteries, chargers, enclosures, and more. Currently, a majority of the parts that go into assembling the Pixel phones in India are imported. The drive is to cut costs and make the company more competitive with local sourcing, the report noted. India is also fast-tracking trade talks with the United States, aiming to seal the first phase of a trade deal in September or October. The countries aim to raise bilateral commerce from $190 billion to $500 billion by 2030. Such a new trade arrangement would entice more US tech companies, such as Alphabet and Apple, to expand their manufacturing in India for shipment to the US.

Currently, Dixon and Foxconn manufacture around 43,000 to 45,000 Pixel smartphones monthly in India, solely for domestic consumption. This is part of Alphabet’s strategy to offset import duties—India levies about 16.5% in total import taxes on smartphones—and to compete better with rivals like Apple and Samsung in the premium segment. Foxconn started assembling Pixel phones at its Tamil Nadu plant in August last year, but the effort was primarily focused on older models. Dixon, which is in joint-venture collaboration with Taiwan’s Compal Electronics, commenced production at its Noida-based facility in December, and now manufactures 65–70% of the Pixel units produced in India, including the latest models.

Alphabet had initially hoped to turn India into a global Pixel manufacturing hub in two to three years, but a lot has happened on the geopolitical and trade front that has hastened this timeline. In addition to India and Vietnam, a handful of Pixel models are also made in China. Google transitioned Pixel production to Vietnam in 2023, primarily using Foxconn and Compal, to decrease reliance on Chinese manufacturing. Reports suggest that nearly half of all premium Pixel models were assembled in Vietnam last year. An executive involved in the process indicated that Alphabet intends to gradually increase Pixel exports from India to the US, while also exploring opportunities to supply additional international markets.