Alphabet shifts Pixel production to India amid US tariffs

Alphabet Inc is accelerating plans to move a significant portion of Google Pixel smartphone production from Vietnam to India, following US tariff threats. Talks are underway with Indian manufacturers Dixon Technologies and Foxconn to begin exporting India-made Pixels to the US.

Alphabet Inc has begun discussions with its local contract manufacturers—Dixon Technologies and Foxconn—to shift part of its global Google Pixel smartphone production from Vietnam to India, particularly for devices destined for the US, according to two industry executives. The initial round of talks took place around two weeks ago.

This move is part of Alphabet’s broader strategy to mitigate sourcing risks, especially with the US threatening steep tariffs on Vietnamese imports—currently the primary production hub for Pixel. The company has also outlined plans to localise certain components in India, such as enclosures, chargers, fingerprint sensors, and batteries. Presently, most parts for the Pixel phones made in India are still imported.

“US President Donald Trump had announced a 46% tariff on Vietnam, compared with 26% on India.” He later paused reciprocal tariffs by 90 days from April 9, although a 10% base tariff continues. Notably, China was excluded from the 90-day relief and faces the highest tariff at 145%. India, meanwhile, is fast-tracking trade negotiations with the US, aiming to conclude the first phase of a trade pact by September-October. This agreement seeks to raise bilateral trade to US$ 500 billion by 2030, up from US$ 190 billion, making India a more appealing manufacturing hub for American firms like Alphabet and Apple.

Currently, Dixon and Foxconn produce around 43,000-45,000 Pixel phones monthly in India, solely for the domestic market. Dixon handles 65-70% of the output, including the latest models, while Foxconn focuses on older variants. Foxconn started production in Tamil Nadu last August, followed by Dixon’s Noida facility in December, in collaboration with Taiwan’s Compal Electronics.

“Alphabet had planned to make India a global production base for Pixel smartphones, but over two or three years.” However, the evolving US tariff environment has pushed the company to expedite its timeline.