Google Chooses Vietnam for High-End Smartphone Production
Google is moving its high-end smartphone production to Vietnam this year, signaling the country's growing role in global tech manufacturing, as reported by Nikkei Asia
Vietnam is emerging as a new hub in the global tech industry, as Google has chosen the country to develop and manufacture its high-end smartphones starting this year. This shift reflects Vietnam’s growing capabilities to support the development of new product lines, a task that was once exclusively handled in China.
According to a report from Nikkei Asia, Google will begin developing and manufacturing Pixel, Pixel Pro, and Pixel Fold models in Vietnam, a move similar to Apple's strategy in India. The development process will start from scratch, including the New Product Introduction (NPI) phase, which involves designing, testing, and adjusting production methods to ensure that the new devices can be manufactured to meet the specified design requirements. This phase is crucial in launching new electronics.
The NPI process is considered a significant milestone for suppliers, as it signifies that they have the capacity to handle new products for major companies like Google or Apple.
Although both Google and Apple have been working to diversify their supply chains for years, they still conduct NPI processes for smartphones in China due to the country’s established supply chain infrastructure. The shift of production to other countries has been slow because of the complexities and challenges involved in building new supply chains and production facilities elsewhere.
This latest move comes amid increasing uncertainties in the tech industry, largely due to Trump-era tariff policies. In response, Apple has already ramped up production in both India and Vietnam. If both Google and Apple succeed in shifting more smartphone production out of China, it would mark a significant success in the effort to diversify the global tech manufacturing base, further strengthening Vietnam’s position in the global supply chain.
Currently, Google already manufactures high-end smartphones in Vietnam on a commercial scale, meaning the country is well-positioned to handle the development of new models from the ground up. However, expanding production outside of China faces obstacles, particularly due to China’s strict export controls on machinery and production personnel.
For instance, Apple’s suppliers face stricter customs checks, causing delays in shipping equipment. This has slowed down Apple’s production expansion in India. Similarly, Google experienced delays last year in scaling up smartphone production in Vietnam due to challenges in moving equipment and personnel across borders.
As one source close to the situation stated, “Many production tools and testing equipment are made in China, and it has become difficult to ship them to other countries. Beijing does not want its manufacturing industry to be hollowed out, so we must be patient and wait.”
Source: Nikkei Asia
