[News] Google Reportedly to Develop High-End Pixel Phones From Scratch in Vietnam Amid China Diversification

Global tech companies are stepping up efforts to diversify their supply chains beyond China amid rising geopolitical risks. According to Nikkei, sources say Google plans to shift new product introduction (NPI) work for its Pixel, Pixel Pro, and Pixel Fold smartphones to Vietnam. Development of the lower-end Pixel A series, however, is expected to remain in China for the time being.

The report notes that conducting NPI in Vietnam is significant because it demonstrates the suppliers’ ability to support a client’s new product launches for the year. NPI includes developing, verifying, and fine-tuning production processes and is considered the most critical stage when bringing a new electronics device to market, the report adds.

Despite years of efforts to diversify supply chains, the report notes that both Google and Apple continue to conduct smartphone NPIs in China, given the complexity of developing products from the ground up and the lack of similarly mature supply chains elsewhere.

Still, the report indicates that Google already mass produces its high-end smartphones in Vietnam and conducts some verification work there, suggesting that developing new phone models from the ground up in the country should be feasible.

Similar to Google’s move, Apple is diversifying production toward India. Sources cited by Nikkei note that Apple is weighing the option of running dual NPIs in India and China as a risk-mitigation measure, a strategy that would require duplicating investment and resources to ensure smooth execution. In addition, the company has also told suppliers that the majority of MacBooks and iPads for the U.S. market are required to be produced in Vietnam, Nikkei notes.

Tech Giants and Suppliers Step Up Vietnam Manufacturing Investment

Component suppliers to Samsung Electronics’ smartphones are also increasing investment in Vietnam. According to Nikkei, Meiko Electronics plans to invest ¥40 billion (about US$255 million) to build a printed circuit board plant in Vietnam, with products expected to be used in Samsung’s latest generative AI–capable smartphones. The facility will be located in the Quang Minh district near Hanoi, with construction set to begin in fiscal 2026, which starts in April, and mass production slated for fiscal 2027. Samsung will assemble the phones at its existing Vietnam plants, the report adds.

Beyond global tech giants, Chinese companies are also expanding manufacturing capacity in Vietnam. According to Reuters, Luxshare, best known as Apple’s AirPods supplier, plans to begin producing game consoles in Vietnam from 2026, with annual capacity of up to 4.5 million units.

However, Nikkei notes that a major hurdle to shifting supply chains out of China is the heavy concentration of production and testing equipment manufactured in China. Many of these tools are difficult to export, as Beijing seeks to prevent its manufacturing base from being hollowed out.

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