As U.S.-China tensions escalate, Microsoft, Amazon, and Google are accelerating efforts to move their product manufacturing and data center production away from China, according to a new report from Nikkei.
Microsoft reportedly plans to have 80% of components for its Surface devices and data centers produced outside China by 2026. The company is also shifting some Xbox console production to other parts of Asia.
Amazon Web Services is reviewing its reliance on long-time Chinese suppliers for printed circuit boards used in AI data centers, while Google is increasing server production in Thailand with new local partnerships.
Related: China Bans Nvidia AI Chips, Shuts Out U.S. Giant From Market
Despite the push, experts say moving complex supply chains out of China will be challenging due to the country’s deep technological capabilities. The shift comes amid a series of escalating trade restrictions and tariffs between the U.S. and China, putting tech companies under pressure to diversify their operations.
