According to two sources familiar with the matter, Alphabet’s Google is set to manufacture its Pixel smartphones in the southern Indian state of Tamil Nadu, in collaboration with Taiwan’s Foxconn.

“It will produce the latest smartphone models within the state, utilizing the existing Foxconn facility in Tamil Nadu,” one of the sources stated anonymously due to lack of authorization to speak with the media.

Foxconn, known for assembling Apple’s iPhones near Chennai in Tamil Nadu, is part of Google’s strategy to diversify its manufacturing beyond China amidst tensions between Beijing and Washington.

“The investment in Tamil Nadu is distinct from the reported partnership between Dixon and Google for smartphone manufacturing in India,” the source added, noting that the decision followed discussions between Tamil Nadu officials and Google executives.