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Report: Microsoft, AWS and Google Plan to Move Hardware and Server Production Out of China by 2026

Escalating trade restrictions with rising supply‑risk concerns are driving an urgent push to diversify manufacturing.

Overview

  • Microsoft has asked suppliers to prepare out‑of‑China production for Surface devices and data‑center servers starting as early as 2026, according to Nikkei Asia.
  • The company is targeting about 80% of the server bill of materials to be sourced outside China, supplier executives told reporters.
  • AWS has evaluated buying fewer printed circuit boards from longtime Chinese supplier SYE for AI data‑center servers.
  • Google is pressing partners to expand server manufacturing in Thailand, securing multiple suppliers for parts, components, and assembly.
  • Supplier sources say moving assembly is manageable but component‑level shifts on a 2026 timetable are very challenging, and Microsoft has already relocated portions of server production.