Google Accelerates India Manufacturing Plans, Chooses Tamil Nadu: Report

Alphabet Inc’s GOOG GOOGL Google is planning to invest crucially in Tamil Nadu, India, establishing new smartphone production lines.

The tech giant is focusing on manufacturing its Pixel phones in collaboration with its Taiwanese partner, Foxconn Technology Co Ltd FXCOF, according to a report from Bloomberg.

Additionally, Google’s Wing subsidiary will produce drones in the same region.

Alphabet is fast-tracking its manufacturing initiatives in India, aligning with the strategy of other tech giants like Apple Inc. AAPL, which have sought to diversify production away from China due to geopolitical concerns.

This move is a significant win for Tamil Nadu, which aims to enhance its manufacturing sector and build on its reputation as the “Detroit of India.”

A delegation from Tamil Nadu, including the state's Minister for Industries, T.R.B. Rajaa, and senior officials, engaged in discussions with senior Google executives in the United States to advocate for their state as a prime location for manufacturing, according to Bloomberg.

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Last year, Google announced plans to begin production of its Pixel 8 smartphones in India, without specifying the location.

The latest development confirms Tamil Nadu as the chosen site. Following Apple’s steps, Samsung Electronics Co Ltd SSNLF) has also set up assembly units in India, underscoring the country’s growing importance in global tech manufacturing.

The shift of global tech production to India is a considerable advantage for Prime Minister Narendra Mod, especially as the country approaches critical elections.

Modi's production-linked financial incentives have played a pivotal role in attracting major electronics manufacturers to India, bolstering the nation’s economic landscape.

Alphabet stock has gained more than 43% in the last 12 months. Investors can gain exposure to the stock via the Communication Services Select Sector SPDR Fund XLC and Vanguard Communication Services ETF VOX.

Price Action: GOOGL shares are trading lower by 0.26% at $175.92 at last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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