Google plans major smartphone production in India

Google intends to invest significant sums in India’s Tamil Nadu state to establish smartphone manufacturing operations, selecting the southern industrial region as a focal point for its manufacturing endeavours in the nation, Bloomberg reported on Thursday.

According to sources familiar with the matter, the Alphabet Inc. subsidiary plans to commence assembly of Pixel phones within the state, initiating new production facilities in collaboration with Taiwanese contract manufacturing partner Foxconn Technology Group. Additionally, its subsidiary, Wing, is slated to undertake drone assembly operations in Tamil Nadu.

These details, however, are shared with Bloomberg on condition of anonymity as the information remains private.

This move by Google reflects a strategic acceleration in its efforts to manufacture devices within India, aligning with the trend seen in companies including Apple Inc., which shifted focus away from China to mitigate geopolitical risks.

The decision by Google does not only benefit Tamil Nadu but also supports the state’s aspirations to advance its manufacturing sector, moving away from its traditional moniker as the “Detroit of India.”

Sources indicate that a delegation from the Tamil Nadu government, led by Minister for Industries T.R.B. Rajaa and senior executives, engaged in discussions with senior Google management in the United States, promoting their state as an ideal manufacturing location.

According to Bloomberg, at the time of this report, Google representatives had not responded to requests for comment. However, earlier reports by Indian news website Moneycontrol had hinted at Google’s intentions to establish manufacturing operations in Tamil Nadu.

Google had previously announced its plans to commence production of Pixel 8 smartphones in India, although the specific location was not disclosed.

Meanwhile, Apple has initiated some iPhone production in India, and Samsung Electronics Co. has also established assembly operations in the country.

The influx of global technology giants shifting production to India holds promise for Prime Minister Narendra Modi, particularly as the country undergoes elections to select new leadership. Modi’s production-linked financial incentives have played a pivotal role in attracting electronics manufacturers to India.