Google will move Pixel production from China to Vietnam

According to a report from Japanese news agency Nikkei, Google will move pixel production from China to Vietnam in the midst of a growing US-China trade war to take advantage of the cheap southeast Asian supply chain.

To improve its hardware production goals, Google began this summer to transform the former Nokia factory in the northern Vietnamese province of Bac Ninh to prepare for Pixel production, according to the Nikkei Asian Review. Bac Ninh is also where Samsung developed its smartphone supply chain ten years ago, giving Google the edge with an experienced local workforce.

According to this report, Google aims to increase production and deliver between 8 million and 10 million smartphones before the end of 2019. This is about double the last year’s production, according to a Nikkei report. Considering that Google has not yet made it into the top 10 for smartphone delivery globally, this is a major move that will help it further solidify in the industry.

Pixel 3a achieved strong success and helped Google  to nearly 90% year-on-year growth in the US market alone in 2019. Increasing production, but lowering associated costs, would help Google further delve into the smartphone industry and address the biggest players. Pixel Production 3a should also move from China to Vietnam by the end of the year.