Google Pixel 3a XL

Todd Haselton | CNBC

Alphabet’s Google is shifting its Pixel smartphone manufacturing to Vietnam from China beginning this yr because it builds an inexpensive provide chain in Southeast Asia, the Nikkei enterprise day by day reported on Wednesday.

The transfer comes as labor prices are rising in China together with added stress from spiraling tariffs because of the ongoing Sino-U.S. commerce tensions.

The U.S. web large plans to maneuver most of its American-bound {hardware} out of China, together with the Pixel telephones and its good speaker Google House, Nikkei said.

The corporate plans to ship about eight million to 10 million smartphones this yr, double from a yr in the past, making Vietnam a key a part of Google’s drive for development within the smartphone market, the newspaper added.

Google will shift some manufacturing of the Pixel 3A telephone to Vietnam earlier than the top of this yr, Nikkei reported citing sources.

For its good audio system, some manufacturing is prone to be moved to Thailand however the firm’s new product growth and preliminary manufacturing for its {hardware} lineup will nonetheless be in China, the newspaper mentioned.

Google didn’t instantly reply to a request for touch upon the matter, outdoors common enterprise hours.

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