Google has reportedly completed development of its first AI-enabled glasses, with manufacturing likely to take place in Taiwan.

Quanta, known for its electronics manufacturing, handled the prototype design and is a strong contender for production, while market speculation suggests HTC may also be in the running.

HTC, a tech company based in Taiwan, recently released its own AI glasses, the Vive Eagle, and transferred some R&D personnel with skills in AR/VR and non-exclusive licensed patents to Google for US$250 million.

HTC previously sold its Powered by HTC smartphone division to Google in a one-time deal for US$1.1 billion.

Although contract manufacturing is no longer HTC’s core business, the company’s experience producing its own AI glasses shows it could be a potential producer for Google’s new device.

HTC’s Vive Eagle is the world’s first branded wearable to support traditional Chinese voice control, and features an open AI architecture, allowing users to choose from large language models like Google Gemini and OpenAI’s GPT.

HTC senior vice-president Charles Huang said the company plans to expand AI features through software updates.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Google’s HTC partnership builds on a decade of strategic hardware collaboration

The rumored AI glasses manufacturing deal would extend Google’s long-standing relationship with HTC that began with foundational smartphone innovations.

HTC manufactured the first Android smartphone, the HTC Dream, in 2008, establishing the foundation for Google’s mobile ecosystem 2. This partnership deepened in 2017 when Google acquired 2,000 HTC engineers and gained licensing rights to HTC’s intellectual property for $1.1 billion 3.

The recent $250 million transaction for HTC’s AR/VR personnel and patents signals Google’s continued confidence in HTC’s hardware expertise 1. This suggests Google views HTC as a strategic long-term partner rather than just another contract manufacturer.

2️⃣ Google enters smart glasses market during unprecedented growth phase

The timing of Google’s AI glasses development coincides with explosive market expansion that positions smart glasses as the next major computing platform.

Global smart glasses shipments surged 210% in 2024, with AI-enabled models accounting for 78% of total shipments compared to just 46% the previous year 14. The market is projected to maintain over 60% compound annual growth through 2029, indicating sustained momentum rather than a temporary trend.