Google has announced intentions to invest a substantial sum in Tamil Nadu, India, to establish smartphone manufacturing operations, selecting the southern state as part of its manufacturing expansion strategy within the nation.
According to individuals familiar with the matter, Alphabet Inc., Google’s parent company, aims to commence Pixel phone assembly in Tamil Nadu by setting up new production lines in collaboration with Taiwanese contract manufacturing partner Foxconn Technology Group. Additionally, Google’s subsidiary, Wing, is planning to undertake drone assembly activities in the same region. These details were provided by anonymous sources due to the confidentiality of the information.
The decision by Google to expedite its manufacturing plans in India aligns with a broader trend observed in the industry, where companies like Apple Inc. are diversifying away from China to mitigate geopolitical risks. This move by Google not only supports its own objectives but also benefits Tamil Nadu, which is striving to advance its manufacturing sector and shed its traditional moniker as the “Detroit of India.”
Reports indicate that representatives from the Tamil Nadu government, including Minister for Industries T R B Rajaa and other senior officials, engaged in discussions with Google’s senior management in the United States to advocate for their state as an ideal manufacturing destination.
At the time of reporting, Google has not responded to requests for comments on these developments. Earlier coverage by Indian news website Moneycontrol had hinted at Google’s plans to initiate manufacturing activities in Tamil Nadu.
In a previous announcement, Google had disclosed its plans to commence Pixel 8 smartphone production in India, although it did not specify the location. This move mirrors similar strategies adopted by Apple and Samsung Electronics Co., which have shifted some of their production operations to India.
The decision by global technology giants to relocate manufacturing operations to India presents a potential opportunity for Prime Minister Narendra Modi’s administration, particularly amid ongoing elections to select new leadership. Modi’s incentives aimed at incentivizing production, commonly referred to as production-linked financial incentives, have played a pivotal role in attracting electronics manufacturers to the country.
