Google is preparing to take a major step in reshaping its global supply chain by developing and manufacturing premium smartphones in Vietnam for the first time, Nikkei Asia reported. The move reflects push by US technology companies to reduce dependence on China and build more complete manufacturing ecosystems elsewhere.
Google will begin carrying out new product introductions (NPI) for its flagship Pixel, Pixel Pro and Pixel Fold smartphones in Vietnam. However, the lower-cost Pixel A series will continue to be developed in China for now, the news report said.
What is NPI?
NPI is the phase where a device is built from scratch. It involves designing the product, testing components, verifying manufacturing processes and refining production lines before mass production begins. This stage determines whether a new product can be produced at scale without quality issues.
Why NPI is a crucial step in smartphone making
NPI is considered the most critical part of electronics manufacturing. It requires hundreds of engineers from both the company and its suppliers to work together. Companies also need to invest heavily in testing tools and specialised machinery to ensure designs can be made exactly as planned.
For suppliers, being involved in NPI is seen as a major achievement. It shows that they have the technical ability and reliability to handle a brand’s newest products for the year.
Despite years of supply chain diversification, both Google and Apple have so far kept NPIs for smartphones in China. This is because China offers unmatched manufacturing depth, skilled labour and a mature ecosystem that is difficult to replicate elsewhere, the news report said.
Trade tensions add urgency to supply chain shift
The push to move NPIs comes as global tech firms face growing uncertainty from US trade policies. Tariff decisions under the Donald Trump administration have disrupted supply chains since April 2025, forcing companies to rethink long-term manufacturing strategies.
Apple has already increased production capacity in India and Vietnam, as reported earlier by Nikkei Asia. However, the stakes are high when it comes to shifting early-stage development.
Given the risks involved, Apple is considering running NPIs in both China and India at the same time as a backup strategy. This would require double the investment but would reduce the risk of production delays.
Vietnam’s role in Google’s production
Google already mass-produces high-end smartphones in Vietnam and conducts some verification work there. Because of this, sources say developing phones from scratch in the country should be possible, the news report said.
If both Google and Apple succeed in carrying out NPIs outside China, it would mark a major milestone. It would show that non-China supply chains are capable of handling the most complex parts of smartphone manufacturing.
China export controls remain a challenge
However, moving NPIs is only one part of the supply chain shift. Expanding overseas production remains difficult due to restrictions from Beijing. China has tightened controls on exporting production equipment and relocating skilled workers.
Apple suppliers have faced stricter customs checks when shipping machinery to India, slowing expansion plans. Google’s efforts to scale up smartphone production in Vietnam last year were also delayed for similar reasons, the news report said.
