Alphabet Inc’s Google is shifting its Pixel smartphone production to Vietnam from China this year as it builds a cheap supply chain in South-east Asia.
The move comes as labour costs are rising in China along with added pressure from spiralling tariffs due to the ongoing Sino-US trade tensions.
The US internet giant plans to move most of its American-bound hardware out of China, including the Pixel phones and its smart speaker Google Home.
The company plans to ship about 8 million to 10 million smartphones this year, double from a year ago, making Vietnam a key part of Google’s drive for growth in the smartphone market.
For its smart speakers, some production is likely to be moved to Thailand but the company’s new product development and initial production for its hardware lineup will still be in China.
Google did not immediately respond to a request for comment on the matter.
