Google plans to shift the early development of its premium Pixel smartphones to Vietnam this year, marking a major change in how the tech giant manages its manufacturing operations.
The company will relocate what’s called new product introduction work for its high-end phone models away from China, Nikkei Asia reports. This includes the Pixel, Pixel Pro, and Pixel Fold lines. However, the budget-friendly Pixel A models will still go through initial development in China.
New product introduction, or NPI, represents the crucial early phase where companies figure out how to actually build a new device on a large scale. This work involves developing production methods, checking quality standards, and adjusting manufacturing processes. The phase demands hundreds of engineers and substantial spending on testing machinery and specialized tools.
Until now, Google and other major tech companies have kept this sensitive work in China. The country’s well-established network of suppliers and manufacturers has made it safer to launch new products there. But recent changes in trade policy under the Donald Trump administration have pushed companies to reconsider their approach. Tariff-related disruptions began affecting electronics makers in April of last year, according to the report.
Apple takes a similar path
Google isn’t alone in this shift. Apple is also looking at running duplicate NPI operations in both India and China as a backup plan. Nikkei Asia had previously reported on Apple’s intentions to bring iPhone development work to India.
Vietnam isn’t completely new territory for Google. The company already produces high-end smartphones there and handles certain verification tasks in the country. This existing presence makes expanding operations more practical.
Still, challenges remain. China has created obstacles by limiting exports of production equipment and restricting the movement of Chinese workers to other locations. These restrictions have reportedly slowed down Apple’s expansion in India and Google’s growth plans in Vietnam.
Major supply chain shift
If Google and Apple successfully manage to run full development operations outside China, it would represent a significant shift in global electronics manufacturing. Both companies would rely less on China’s dominant position in the tech supply chain.
Google first began moving Pixel assembly from China to Vietnam back in 2019. Since then, the company has expanded production to both Vietnam and India. Now it aims to go further by handling complete development processes in these locations.
Two sources familiar with the matter told Nikkei that creating Pixel phones entirely in Vietnam seems feasible given Google’s current operations there.
Analyst Lori Chang explained to the outlet that moving NPI work to another country serves as an important sign of whether a supply chain can function on its own. She noted that both political tensions and tariff concerns motivate companies to relocate their supply chains, which can lower expenses in the long run. Having the ability to design and manufacture phones in multiple countries provides Google with more options financially and strategically.
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