As trade tensions between the US and China escalate, Microsoft is reportedly preparing to move production of its Surface laptops and tablets out of China. Nicky Microsoft aims to move production of surface appliances and data center servers from China “starting in 2026 at the earliest”.
The move will reportedly include components, parts, and product assembly for future tier hardware and server products. The report claims that Microsoft has already moved some of its existing server production out of China, and is also pushing to produce more Xbox consoles outside the country.
News of Microsoft’s potential manufacturing changes comes just days after President Trump threatened China with 100 percent additional tariffs and more export controls on software. The U.S. and China have also begun levying new port fees on each other’s ships in recent days, just a week after Beijing tightened export rules on rare earths.
Microsoft is far from the only company trying to expand its manufacturing outside of China. Apple is also reportedly preparing to manufacture a series of new devices in Vietnam. Bloomberg Apple’s rumored smart home display hub, indoor security cameras, and a “more advanced tabletop robot” are to be produced in an effort to move manufacturing away from China.
