As trade tensions between the United States and China escalate, Microsoft is reportedly planning to relocate the manufacturing of its Surface laptops and tablets from China. According to a report by Nikkei, the company aims to begin this transition by 2026. This move encompasses not only the assembly of Surface devices but also the production of components and parts related to future Surface hardware and server products.
Furthermore, the report indicates that Microsoft has already shifted some of its current server production outside of China, with plans to increase manufacturing of Xbox consoles in other regions as well. This potential change in Microsoft’s supply chain strategy coincides with recent threats from former President Trump regarding additional tariffs on Chinese imports and new software export controls.
In parallel to these developments, the US and China have initiated new port fees affecting each other’s shipping operations. This announcement follows China’s recent decision to tighten export regulations on rare earth materials, contributing to the already complex economic relationship between the two nations.
Microsoft is not alone in its efforts to diversify manufacturing locations; Apple is also reported to be moving some production to Vietnam. According to Bloomberg, Apple’s new devices, including a smart home display hub and indoor security cameras, are slated to be produced in Vietnam, reflecting a broader trend among tech companies aiming to reduce dependency on Chinese manufacturing.
The ongoing shifts in manufacturing strategies among major companies highlight the growing impact of geopolitical factors on global supply chains.
Source: https://www.theverge.com/news/800538/microsoft-surface-manufacturing-china-move-report