Google is looking for suppliers in India to assemble its Pixel smartphones in an effort to diversify beyond China.
Companies in consideration
It has initiated talks with companies including homegrown Lava International Ltd. and Dixon Technologies India Ltd. as well as Foxconn Technology Group’s Indian unit Bharat FIH.
Key Google executives who visited India this month for the partnership talks included Ana Corrales, operating chief of its consumer hardware arm, and Maggie Wei, a senior director of global sustaining product operations, sources said.
Google would be the latest global technology giant to approach India as a viable alternative to China for smartphone production after the negative impact of COVID and strict restriction policies.
Apple manufacturing in India
Apple has shifted some of its iPhone production to India in recent years and has been assembling its iPhones locally dating back to 2017.
It plans to move up to 25% of all iPhone production to India by 2025 and up to 50% by 2027.
The potential partners Google is in talks with have won production-linked financial incentives, which have boosted local manufacturing.
Apple has used the program to widen its supplier base in India and tripled iPhone output to more than $7 billion in the fiscal year through March 2023.
Alternative manufacturing hub
Prime Minister Narendra Modi has been promoting the country as an alternative manufacturing hub.
China has become difficult due to its harsh Covid lockdowns and a trade war with the US.
Modi is scheduled to visit the US where his delegation is expected to hold talks regarding topics including a removal of tech trade barriers between the two countries.
Technology Minister Ashwini Vaishnaw had met with Google Chief Executive Officer Sundar Pichai where they spoke about Modi’s local manufacturing drive and India’s state-backed technology push.
Potential manufacturing of other products
India is also a key growth market for Google’s services.
Local assembly could help drive up Pixel sales and if production is successful, Google could also move production of other hardware such as speakers to India.
Still, there is no certainty Google’s talks will result in a deal and the company could opt not to build the Pixel in India.
