Google and Foxconn to make Pixel smartphones in Tamil Nadu
Alphabet Inc, Google's parent company, has revealed plans to manufacture its flagship Pixel smartphones in Tamil Nadu. The announcement was made by Chief Minister MK Stalin who stated, "For the very first time Google Pixel Manufacture Unit to be set up in Tamil Nadu." Google will join hands with Foxconn Technology Group, a Taiwanese contract manufacturer, to set up new production facilities in the southern state. The partnership extends beyond smartphones to potentially include drone assembly by Alphabet's subsidiary Wing.
Production may happen via Dixon and Foxconn
Google's move is consistent with its 2023 announcement to produce Pixel 8 smartphones in India. It also mirrors similar strategies from competitors such as Apple and Samsung. Google is said to make its smartphones through Foxconn as well as Dixon Technologies. As per the reports, Dixon plans to manufacture Google Pixel 8 in India, with a target of producing 100,000 Pixel units monthly and exporting 25-30% of them.
India's incentive scheme boosts local electronic manufacturing
India has been promoting local manufacturing of electronic items like smartphones via the Narendra Modi government's flagship Production-linked Incentive (PLI) scheme. Counterpoint Research estimated Google Pixel's share in the Indian smartphone market. at 0.04% during the March 2024 quarter. Also, the Pixel 8 constitutes roughly 80% of all sales. However, due to domestic manufacturing and the growing premiumization trend, it is expected to register a healthy growth of 30% annually in 2024.
Emergence as preferred investment destination for manufacturing
Alphabet's move is part of India's broader effort to attract manufacturers away from China and establish itself as a global manufacturing hub. A recent report by Capgemini Research Institute revealed that India tops the list of investment destinations for senior executives in Europe and the US, looking to shift part of their buildng capacity to emerging markets. According to Finance Minister Nirmala Sitharaman, 99% of all mobiles sold in India are now made locally.
