Microsoft (NASDAQ:MSFT) intends to manufacture most of its new hardware outside of China starting as early as next year, while Amazon (NASDAQ:AMZN) Web Services (AWS) is pushing supply chain diversification down to the component level, according to a report from Nikkei Asia on Thursday.
The move signals a new phase in U.S. tech firms’ efforts to reduce their dependency on China, as tensions between Washington and Beijing continue to intensify.
Microsoft has reportedly instructed suppliers to prepare “out of China” production for its Surface laptops and data center servers beginning in 2026. The company has already relocated much of its server manufacturing and now targets sourcing 80% of related materials from outside China, the report said.
AWS, meanwhile, is working to reduce its reliance on Chinese vendors for sensitive AI server components. Executives acknowledged, however, that replacing long-standing partners entirely remains challenging.
The article also noted that GOOGL (Google) is ramping up server production in Thailand, further underscoring the growing shift of tech manufacturing away from China.
These moves reflect a broader push by U.S. technology giants to protect their supply chains from geopolitical shocks and potential export restrictions.
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