Google to shift Pixel production to Vietnam in 2027

Google plans to shift the production of its flagship Pixel smartphones, smartwatches and wireless earbuds from China to Vietnam by 2027, driven by rising geopolitical tensions between the United States and China that have pushed major tech firms to diversify their supply chain risks.

The transition marks a complete shift of high-end product development and manufacturing to Vietnam, building on the success of Pixel smartphone assembly in the country in 2026.

While India remains under consideration as a secondary manufacturing site, Vietnam has emerged as the trusted hub for Google’s more technically complex products.

If successful, Google will become the second major tech giant after Samsung Electronics to fully relocate its manufacturing operations out of China.

Alongside its manufacturing pivot, Google is adjusting its strategy to compete in an increasingly fierce smartphone market. The company has reportedly raised its Pixel shipment target for this year by 8–10%, despite surging costs for memory chips and critical hardware components.

To offset margin pressures, Google has consolidated its memory chip procurement across its cloud and hardware divisions into a single bulk order. The move boosts its bargaining power with dominant suppliers like Micron Technology, Samsung and SK Hynix to secure more favourable contract terms.

Google’s broader strategy — diversifying production away from China, boosting Pixel shipments, and streamlining semiconductor procurement — underscores a deliberate effort to build a resilient supply chain.

The move also reinforces Vietnam’s position as one of Southeast Asia’s top destinations capable of supporting advanced technology manufacturing.

Source: Yahoo Finance, Nikkei Asia 

Source – Bangkok News