Alphabet's Google (GOOGL.O) is planning to make its Pixel smartphone in India's southern state of Tamil Nadu and has tied up with Taiwan's Foxconn (2317.TW), two sources with direct knowledge said on Thursday.
"It will be making the latest models of its smartphones in the state... at the existing Foxconn facility (in Tamil Nadu)," one of the sources said on condition of anonymity as they are not authorized to talk to the media.
Foxconn already assembles Apple's (AAPL.O) iPhones at a facility near Chennai in Tamil Nadu.
Read also: Google to make Pixel smartphones in India by next quarter, Nikkei reports
Big global manufacturers are looking to diversify their supply chain beyond China amid geopolitical tensions between Beijing and Washington and are considering India as an option.
"The investment in Tamil Nadu is separate from the reported tie-up between Dixon (DIXO.NS) and Google (to make smartphones in India)," the source said, adding the decision came about after the state's officials met with Google executives recently.
News website Moneycontrol first reported on Google's plans.
Google, Foxconn and the Tamil Nadu government did not immediately respond to Reuters' requests for comment.
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