Google is set to start manufacturing its Pixel smartphones in India as early as next quarter, marking a strategic shift to diversify its supply chain beyond China and tap into India’s growing smartphone market.

What to know: According to a report by Nikkei, the tech giant plans to set up the production line for the high-end Pixel 8 Pro in Southern India in the upcoming weeks, followed by the Pixel 8 in Northern India mid-year. This development comes amidst the growing stature of India as a smartphone manufacturing hub, with tech leaders like Apple, Samsung, Oppo, and Xiaomi expanding their footprint in the region.

While initially starting with limited production volumes, this shift marks a significant strategy change for Google, which has relied on Vietnam for manufacturing amidst rising tensions between the U.S. and China.

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Why it matters: The move reflects a broader industry trend towards a ‘China+2’ strategy, seeking multiple non-China production bases to ensure supply chain resilience. Google’s venture into India follows its 2023 announcement about the release of its first India-manufactured Pixel phones, joining Apple and Samsung in capitalizing on the vast Indian market.

The Indian government’s push to become a tech manufacturing powerhouse through incentives and potential import restrictions further entices companies like Google. This aligns with actions from other tech giants like Apple, Acer, and ASUS, which are also ramping up their Indian production efforts.

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