Microsoft Shifts Surface Production Out of China
▼ Summary
– Microsoft plans to relocate Surface laptop, tablet, and server manufacturing from China starting in 2026 at the earliest.
– The move includes shifting components, parts, and assembly for future Surface hardware and server products.
– Microsoft has already moved some server production and is increasing Xbox console manufacturing outside China.
– This follows recent US-China trade tensions, including new tariffs, export controls, and port fees.
– Apple is also expanding manufacturing outside China, with plans to produce new devices in Vietnam.
In a significant strategic shift, Microsoft is preparing to relocate the production of its Surface laptops and tablets away from China, according to a new report. The technology giant aims to begin this transition for its Surface devices and data center servers as early as 2026. This planned move encompasses not just final assembly, but also the manufacturing of various components and parts destined for future hardware releases.
Sources indicate that Microsoft has already initiated the transfer of some existing server production lines to locations outside of Chinese territory. The company is also reportedly accelerating efforts to manufacture a greater portion of its Xbox gaming consoles elsewhere. This broader supply chain realignment reflects a growing trend among major tech corporations seeking to diversify their manufacturing footprint beyond China’s borders.
These developments emerge against a backdrop of escalating trade friction between the United States and China. Recent weeks have seen heightened tensions, including new tariff threats from the former U.S. administration and the imposition of reciprocal port fees. These actions follow China’s decision to tighten controls on the export of rare earth minerals, which are crucial for manufacturing electronics.
Microsoft is not operating in isolation with this strategy. Apple is similarly pursuing plans to manufacture several new products in Vietnam, moving production for key items out of China. Industry reports suggest Apple’s upcoming smart home display hub, indoor security cameras, and a sophisticated tabletop home robot are all slated for Vietnamese production. This parallel movement by two industry leaders signals a potential large-scale reconfiguration of global electronics manufacturing networks, reducing the historical concentration of production within a single geographic region.
(Source: The Verge)
