TAIPEI—Google Inc.'s smartwatch is in late-stage development and the company is in talks with Asian suppliers to begin mass production of the device, people familiar with the matter said.

The new device, which will run on Android, will be integrated with Google Now, the company's intelligent personal assistant that can answer questions, make recommendations and predict what information users need based on what they are doing, a person familiar with the situation said. Google has also been working to reduce power consumption...