Due to U.S. duties, Google relocates smartphone production to former Nokia factory

Several Nikkei Asian Review building sources report that Google is moving production

smartphones from China to Vietnam.

Why?

This is due to the trade war between the US and China. More precisely, the trade tariffs that America is going to introduce on September 1 because of this war.

According to the office of the US Trade Representative,On September 1, the US Customs and Border Protection agency will begin levying a 15 percent tariff on some Chinese goods (totaling more than $125 billion). The list included smartwatches, Bluetooth headphones, TVs and shoes. From December 15, a 15% tariff will be charged on goods from the rest of the list: mobile phones, laptops, toys and clothing.

Thus, despite the fact that GoogleAmerican “registration”, you will have to pay for gadgets assembled in China. And this is either an increase in prices for devices or a loss of income. Therefore, the company decided to move production.

Where?

Now the new Pixel will be assembled in Vietnam, at a former Nokia factory. It is now owned by FIH Mobile, a subsidiary of Foxconn. Modernization of the plant has already begun.

But the production of “smart” speakers may be moved to Thailand. Google will not leave China completely: primary production of some device hardware will remain here

By the way, other American companies are also thinking about “moving” from China due to trade tariffs. These include Apple, HP, Dell, Microsoft, Amazon, Lenovo, Acer, Sony, Asus and Nintendo.