Global Giant Shifts Manufacturing Hub from China to Vietnam, Hailed as a Major Victory by International Media

According to exclusive information from Nikkei Asia, Google will initiate the development and production of its premium smartphones in Vietnam starting this year.

This strategic move aims to establish a complete supply chain outside China, mirroring Apple’s strategy in India.

This shift not only underscores Vietnam’s growing capabilities as a new global tech hub but also signifies the trust of U.S. tech giants in assigning tasks previously exclusive to China, the “world’s factory.”

Vietnam Embraces Production from the Ground Up

Specifically, Google will commence the New Product Introduction (NPI) process for its flagship models—Pixel, Pixel Pro, and Pixel Fold—in Vietnam. Meanwhile, the lower-tier Pixel A series will continue development in China for now.

NPI is a critical phase in launching any new electronic device, encompassing product definition, design testing, component compatibility checks, and production line optimization to ensure the final product aligns with the original design. This process requires hundreds of highly skilled engineers from both the company and suppliers, along with substantial investments in advanced testing equipment and machinery.

A source from an Apple supplier emphasized, “The goal is to achieve the right functionality, compatibility, and reliability for mass production. If NPI fails, there will be no new product that year. Fortunately, this has never happened.” Given its complexity, participation in NPI is considered a “badge of honor” for suppliers, proving their capability to handle cutting-edge products.

A Turbulent Landscape and the “China Exit” Strategy

Despite years of supply chain diversification efforts, both Google and Apple have relied on China for NPI due to its mature and well-established ecosystem. Building a production process from scratch elsewhere is fraught with challenges and delays.

However, recent developments occur amid growing instability in the tech sector, particularly the tariffs imposed by the Trump administration, which have disrupted supply chains since April last year.

According to Nikkei Asia, to mitigate economic and geopolitical risks and reduce dependence on a single country, Apple has increased capacity in India and Vietnam. Apple is even considering “dual NPI” in both India and China as a safety measure. This approach doubles resource investment and requires 200 to 300 engineers at each supplier’s facility to ensure flawless execution.

If both Google and Apple succeed in developing smartphones outside China, it will mark a significant milestone in upgrading non-Chinese supply chain capabilities. Google has already mass-produced premium smartphones and conducted verification processes in Vietnam, making a full-scale shift from scratch entirely feasible.

Challenges from the “Giant” and the 2026 Outlook

Relocating critical processes from China is no easy feat. Beijing has imposed strict export controls on machinery and personnel movement to prevent the hollowing out of its manufacturing sector.

Apple suppliers have faced stringent customs inspections, delaying expansion plans in India. Similarly, Google experienced production expansion delays in Vietnam last year due to similar issues. A source revealed, “Many production tools and testing equipment are made in China but are difficult to transport elsewhere. Beijing doesn’t want its manufacturing sector to hollow out, so we must be patient.”

According to Nikkei Asia, Google plans to complete the transition of developing and producing its premium Pixel models (Pixel, Pixel Pro, Pixel Fold) in Vietnam by 2026. By then, Vietnam will handle the entire development process from scratch, rather than just assembly or relying on initial stages in China as before.

Lori Chang, a senior analyst at Isaiah Research, noted that early diversification stages often involve replicating production or partial assembly. Only when local technical capabilities and supply chains mature do companies introduce NPI outside China. “The significance of NPI lies in establishing product definitions, testing standards, and stable mass production capabilities, serving as a key indicator of a supply chain’s independent operational ability,” Chang explained.

Significant Impact on Vietnam’s Position

Gizmochina observes that this move demonstrates Google’s expanding role for Vietnam beyond mere assembly, entrusting the country with the most critical phases of smartphone production.

In the smartphone industry, handling NPI-related issues is a hallmark of advanced manufacturing capabilities. It also signifies long-term trust from global tech companies.

This decision holds immense significance not only for Google but also for Vietnam’s economy. For China, it signals a gradual reduction in global tech giants’ reliance. For Vietnam, it represents a major victory, attracting investment, creating high-skilled jobs, and strengthening the supplier network, propelling the nation higher in the global tech value chain.

While Google and Apple have not officially commented, if this plan progresses smoothly, Vietnam will soon become one of the world’s most important hubs for developing and producing premium smartphones, opening a new chapter in the reshaping of global tech manufacturing.