Tech giants Microsoft, Amazon, and Google are ramping up efforts to move production of their products and data centers out of China, as geopolitical tensions between Washington and Beijing intensify.
According to a Nikkei report citing supply chain sources, Microsoft plans to relocate up to 80% of the components used to manufacture its Surface notebooks, tablets, and data centers outside China by 2026. The shift includes components and assembly for future notebook and server products.
Microsoft is reportedly asking existing partners to prepare manufacturing capabilities in other countries starting next year. The company is also planning to move some Xbox console production to other parts of Asia.
Amazon Web Services (AWS) is said to be evaluating ways to reduce its dependence on Chinese suppliers, including plans to buy fewer printed circuit boards for its AI data centers from its long-time supplier SYE.
Google, meanwhile, is pushing its suppliers to expand server production in Thailand, where it has secured multiple partnerships for components, assembly, and parts.
However, Nikkei noted that rapidly shifting production out of China presents major challenges, given the scale of the supply chain and the country’s deep technological expertise.
The move comes amid escalating trade and technology restrictions between the U.S. and China, including tariff increases, export controls on critical components, and mutual restrictions on technology sales. Microsoft, Amazon, and Google have not yet commented on the report.
