Overview

• Microsoft has asked suppliers to prepare non‑China production for future Surface laptops, tablets, and data‑center servers that includes components, parts, and final assembly, according to Nikkei reporting cited by multiple outlets.
• The company is targeting new product manufacturing outside China beginning in 2026 at the earliest and has already moved some server output while pushing to build more Xbox consoles outside the country.
• Amazon Web Services is pursuing similar diversification, including exploring non‑China production for sensitive AI servers and evaluating reduced reliance on longtime Chinese PCB supplier SYE, the report says.
• Supplier executives caution that shifting from relocating final assembly to reworking component‑level sourcing is considered radical and difficult on a 2026 timeline.
• Recent tariff threats, new reciprocal port fees, and tighter Chinese export rules have intensified the drive to diversify, as India and Southeast Asian nations compete to attract the redirected manufacturing.