Google is considering moving orders for future phones to Vietnam in an effort to avoid risks posed by current US-China trade tensions and China's COVID-19 lockdown, DigiTimes reported, citing upstream supply chain insiders.
The Silicon Valley giant originally planned to have the smartphone made in Vietnam, but changed its mind due to the pandemic and the strong support from China's supply chain; however, the strict lockdown imposed by China this year in response to the resurgence of COVID-19 caused the company to reconsider, the report said.
The Pixel 6 has become one of Google's best-selling smartphones, with 1.2 million devices shipped in the first quarter of 2022.
The Google Pixel 7 is also in production, but because not much has changed from the Pixel 6, it will still be built in China first, said the report. In the meantime, the tech giant will transfer a small number of orders to Vietnam for testing.
Citing sources, the report said that the production line for Google's new smartphones in Vietnam will be established after 2023 and will be responsible for new-generation models.
Foxconn's wholly owned subsidiary FIH, together with Compal Electronics, are the primary manufacturers of Google's Pixel line of smartphones.
According to the sources, both FIH and Compal already have factories set up in Vietnam and will be able to meet Google's demand at any time.