(Reuters) - Alphabet Inc’s Google is shifting its Pixel smartphone manufacturing to Vietnam from China beginning this 12 months as it builds a reasonably-priced supply chain in Southeast Asia, the Nikkei business daily said on Wednesday.

The flow comes as hard work charges are growing in China together with added pressure from spiraling price lists because of the continuing Sino-U.S. Exchange tensions.

The U.S. Internet large plans to transport maximum of its American-certain hardware out of China, along with the Pixel telephones and its smart speaker Google home, Nikkei said.

The agency plans to ship about 8 million to 10 million smartphones this yr, double from a 12 months ago, making Vietnam a key a part of Google’s pressure for increase within the smartphone marketplace, the newspaper brought.

Google will shift a few manufacturing of the Pixel 3A smartphone to Vietnam earlier than the end of this year, Nikkei suggested citing assets.

For its clever audio system, some manufacturing is in all likelihood to be moved to Thailand but the company’s new product improvement and initial manufacturing for its hardware lineup will nevertheless be in China, the newspaper stated.

Google did now not immediately reply to a request for comment on the problem, outside regular business hours.