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Google considers shifting smartphone production from China to Vietnam

Worrying about the escalation of trade tensions between the US and China as well as China’s Covid-19 lockdown, Google may move its smartphone orders to partner factories in Vietnam in the near future.

Previously, the US technology giant had a plan to produce smartphones in Vietnam. However, due to the pandemic, as well as China's strong supply network, it chose China as its main production base. However, Beijing's strict lockdown policy in response to Covid-19 has forced the group to rethink.

According to data from analytics firm Canalys, Google's Pixel 6 phone series are on high demand in North America. In the first quarter of 2022, about 1.2 million units were sold, increasing its market share in the region from 1% to 3% year on year.

The group plans to continue using the production line at its factories in China to produce the next-generation product, the Pixel 7 series. In the coming time, Google will shift part of the order to Vietnam for training purposes.

According to some sources, Google's new smartphone production line in Vietnam will be installed after 2023 and will produce next-generation models.

FIH, a subsidiary of Foxconn, is the major producer of Google's Pixel series, while Compal Electronics is in charge of supplying some of components for this product line. Both companies have their factories in Vietnam and can process Google's orders at any time.

Vinh Ngo

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