Google plans to move all Pixel production out of China by 2027

Google has told suppliers it plans to move production of all Pixel smartphones, smartwatches and wireless earbuds out of China by 2027.

The decision comes as trade tensions between Washington and Beijing continue, Nikkei Asia reports, citing people familiar with the plans.

Google has spent the past several years expanding its manufacturing footprint in Vietnam and India, although a significant share of production remains in China. The company is now more confident it can complete the shift after successfully producing flagship Pixel phones in Vietnam this year for the first time. Previously, its manufacturing operations there had focused on less complex products such as watches and earbuds.

If Google follows through, it would become the second major smartphone maker after Samsung to move all handset production out of China. One source told Nikkei that Google has an advantage over Apple in making the transition. Unlike the iPhone, Pixel phones are not officially sold in China, while Vietnam already has an extensive supplier network built around Samsung’s manufacturing operations.

At the same time, Google is aiming to increase Pixel shipments by 8% to 10% from last year, when it shipped around 12 million devices, despite a sharp rise in memory chip prices. To secure better terms from Micron, Samsung and SK Hynix, the company is combining memory orders for its smartphones with purchases for its cloud business.