Microsoft, Amazon, and Google are accelerating efforts to reduce their reliance on Chinese manufacturing and infrastructure. According to Nikkei, the companies are responding to rising geopolitical tensions by moving product and data center production out of China.

Microsoft Targets 80% Non-China Production for Surface and Data Centers.

Microsoft plans to shift up to 80% of the components used in its Surface notebooks, tablets, and data centers outside of China by 2026. A supply chain source described the scope of the change as "quite wide," covering both components and assembly for future notebook and server products.

The company has reportedly asked existing partners to establish manufacturing capabilities outside China starting next year. It is also moving part of its Xbox console production to other regions in Asia.

Google and Amazon Push Suppliers to Diversify Manufacturing Bases

Amazon Web Services is evaluating the possibility of reducing its reliance on printed circuit boards sourced from its long-time supplier SYE for its AI data centers. An assessment of the necessary steps has already been conducted.

Google is urging its suppliers to increase server production in Thailand. According to Nikkei, the company has already secured multiple partners for parts, components, and assembly.

Supply Chain Realignment Faces Technological and Logistical Obstacles

Relocating production is expected to be difficult due to the extensive variety of components involved and the advanced capabilities of Chinese manufacturing partners, Nikkei noted.

Tariffs and Export Controls Escalate Tech Industry Pressure

The shift follows ongoing retaliatory actions between the U.S. and China, including increased tariffs, tightened export restrictions, and limits on technology-related trade.

Microsoft, Google, and Amazon did not immediately respond to requests for comment.

PHOTO: FREEPIK

This article was created with AI assistance.