Alphabet’s Google is set to manufacture its Pixel smartphones in the southern Indian state of Tamil Nadu, partnering with Taiwanese electronics giant Foxconn, according to sources familiar with the matter. This strategic move aims to diversify Google’s supply chain amidst escalating geopolitical tensions between the US and China.

The production will take place at Foxconn’s existing facility in Tamil Nadu, one source revealed on condition of anonymity, as they are not authorised to speak to the media. This initiative aligns with global manufacturers’ growing interest in India as an alternative production hub due to the uncertain trade relations between Beijing and Washington.

“The investment in Tamil Nadu is separate from the reported collaboration between Dixon and Google to produce smartphones in India,” the source added. This decision followed recent meetings between state officials and Google executives.

News website Moneycontrol initially reported Google’s manufacturing plans. Google, Foxconn, and the Tamil Nadu government have not yet commented on the development.