Microsoft is reportedly moving its Surface manufacturing out of China
Key Takeaways
- Microsoft plans to move Surface device and data center server manufacturing out of China starting in 2026 at the earliest.
- The relocation effort will include components, parts, and product assembly for future hardware.
- The decision comes amid heightened US-China trade tensions, including new tariff threats and export control measures.
- Microsoft has reportedly already shifted some existing server production and aims to move Xbox console manufacturing abroad.
- Other tech giants, like Apple, are also actively diversifying their supply chains, with plans to manufacture new devices in Vietnam.
Growing trade tensions between the United States and China are prompting major technology companies to re-evaluate their supply chains, with Microsoft reportedly preparing a significant manufacturing shift. Microsoft is aiming to move the production of its Surface laptops, tablets, and data center servers out of China, potentially starting in 2026, according to Nikkei. This relocation effort will cover the manufacturing of components, parts, and the final assembly of future Surface and server hardware. The report notes that Microsoft has already begun relocating some existing server production and is pushing to manufacture more Xbox consoles outside of China. These reported changes follow recent escalations in the trade dispute, such as President Trump's threat of a 100 percent tariff and new port fees imposed by both nations. Microsoft is not alone in this trend, as Apple is also reportedly planning to manufacture several new devices, including smart home products and a tabletop robot, in Vietnam to reduce reliance on Chinese manufacturing.
