As part of its investigation into leveraging India as a centre for smartphone manufacturing, Google is in discussions with several Indian firms, notably Lava International, Dixon Technologies, and Foxconn’s Bharat FIH.
According to reports, Google, an Alphabet Inc. subsidiary, is looking at potential to form partnerships with Indian vendors for the manufacture of Pixel devices. This strategic decision is similar to Apple Inc.’s strategy of expanding its supply chain outside of China.
According to Bloomberg, which cited insiders who asked to remain anonymous due to the sensitivity of the situation, Google has started preliminary talks with a number of Indian businesses, including Lava International Ltd., Dixon Technologies India Ltd., and Bharat FIH, the Indian division of Foxconn Technology Group.
Google is about to join the group of multinational technology firms that are moving their manufacturing to India. Prime Minister Narendra Modi’s production-linked monetary incentives, which have effectively fostered local manufacturing, are currently being discussed by the corporation with possible partners.
Apple has already used this programme to broaden its network of Indian suppliers, which has led to a huge boost in iPhone manufacturing that will reach $7 billion in the financial year that ends in March 2023.
Due to China’s strict Covid lockdowns, a trade dispute between the United States and China, and other factors, Modi has been promoting India as a substitute production base. This week, Modi is due to go to the US, where his delegation will conduct discussions about a variety of issues, including the reduction of trade obstacles between the two nations in technology.
In May, Google CEO Sundar Pichai and India’s Technology Minister Ashwini Vaishnaw had a meeting in Google’s Mountain View, California, headquarters. Their discussion focused on Modi’s push for local manufacturing and India’s state-backed technology initiative.
Ana Corrales, the operating chief of Google’s consumer hardware division, and Maggie Wei, a senior director of global sustaining product operations, visited India this month for partnership negotiations, according to the individuals.
Requests for response from Lava, Dixon, Google, and Foxconn representatives went unanswered.
According to Counterpoint Research, Google produced around 9 million Pixel devices last year, and the conversations in India highlight its aspirations to expand production outside of China and Vietnam. One of the most advanced smartphones available, the Pixel is used by Google to demonstrate the power of its Android software and apps when they are optimised.
India is a significant growing market for Google’s services, but the corporation has mainly stood by and watched as the area has been dominated by cheaper Chinese phones. Local assembly might boost Pixel devices sales, and if the phone project is a success, Google might also outsource the manufacturing of other goods, like speakers, to India, the sources claimed.
However, there is no guarantee that Google’s negotiations would end in an agreement, and the corporation may decide against manufacturing of Pixel devices in India, according to the individuals.
