Google set to invest Billions in Tamil Nadu for Smartphone Manufacturing Plant

Google Pixel
Image Courtesy: Google Pixel

Google is reportedly eyeing a significant investment in Tamil Nadu, aiming to establish smartphone manufacturing facilities in the region, as per Bloomberg reports. The tech behemoth’s focus on Tamil Nadu signals its ambition to expand manufacturing operations within India.

Sources familiar with the matter reveal that Google plans to initiate the assembly of Pixel phones in the state, forging new production lines in collaboration with Taiwanese contract manufacturing partner, Foxconn Technology Group. Furthermore, Google’s subsidiary, Wing, is poised to kickstart drone assembly operations in Tamil Nadu.

A delegation from the Tamil Nadu government, led by Minister for Industries TRB Rajaa and senior executives, engaged in discussions with senior Google management in the US to advocate for their state as a prime manufacturing destination.

While official confirmation from Google or Foxconn is pending, this move underscores Google’s commitment to bolstering its device manufacturing capabilities in India. This strategic decision also mirrors similar moves by industry giants like Apple Inc., aiming to mitigate geopolitical risks by diversifying manufacturing away from China.

For Tamil Nadu, this presents an opportunity to solidify its position in advanced manufacturing. Google had previously announced its intentions to commence local manufacturing of Pixel smartphones in India, with the rollout expected to start with Pixel 8 and Pixel 8 Pro models in October last year. The company has hinted at ongoing discussions with both domestic and international manufacturers regarding the local production of its premium smartphones, although specific details remain undisclosed.

This endeavor is aimed at increasing the availability of Pixel smartphones nationwide, with the initial devices expected to debut in the market sometime in 2024. Google’s recent strategic move underscores the potential of Tamil Nadu as an advanced manufacturing hub. The state has already gained prominence as a pivotal center for Apple’s expanding manufacturing ecosystem in India, with the presence of major players like Foxconn, Pegatron, and Tata.

Previously, Google had partnered with personal computer (PC) manufacturer HP to produce Chromebooks at the Flex facility in Chennai. Tamil Nadu currently leads in electronics exports, boasting $9.56 billion in exports, which represents nearly a third of the nation’s total exports in this sector.