Google ponders moving smartphone production from China to Vietnam

06/07/2022    40

Global tech giant Google is in the process of considering moving orders for future phones to Vietnam in an effort to avoid risks posed by ongoing trade tensions between the United States and China, as well as China's COVID-19 lockdown, newspaper DigiTimes of Taiwan (China) reported.

The Taiwanese media outlet cited sources from the upstream supply chain as saying that the US-based tech firm originally planned to produce its smartphones in Vietnam. However, it ultimately decided to keep its production in China due to a combination of the pandemic coupled with the strong support provided by Chinese supply chains.

However, DigiTimes assessed that the strict COVID-19 lockdowns implemented by the northern neighbour have prompted the company to reconsider its view.

According to figures compiled by Canalys, Google has seen robust demand for its Pixel 6 in the North American market, with the smartphone's shipments reaching around 1.2 million units in the first quarter of 2022. This has thereby raised its share in the region to 3%, up from 1% in the first quarter of 2021.

Google is already in the process of planning for its next-generation Pixel 7 smartphone but will continue to make the phone primarily in China as the device will only feature limited changes compared to the Pixel 6.

According to the sources cited by DigiTimes, the company will seek to shift a small part of its orders to be manufactured in Vietnam for the purpose of training.

DigiTimes also revealed that the production line for Google's new smartphones in the nation will be established after 2023 and will be primarily responsible for new-generation models.

FIH, a subsidiary of Foxconn, is mainly responsible for producing Google's Pixel series, while Compal Electronics is in charge of some parts of the series.

The Taiwanese newspaper concluded that both FIH and Compal already have manufacturing plants in the country and will be able to handle Google's request at any time.

Source: VOV