Microsoft is reportedly moving its Surface manufacturing out of China

As trade tensions grow between the US and China, Microsoft is reportedly preparing to move the manufacturing of its Surface laptops and tablets out of China. Nikkei reports that Microsoft is aiming to move manufacturing of Surface devices and data center servers out of China “starting from 2026 at the earliest.”

The move will reportedly include components, parts, and product assembly for future Surface hardware and server products. The report claims Microsoft has already shifted some of its existing server production outside China, and is pushing to also produce more Xbox consoles outside of the country.

News of Microsoft’s potential manufacturing changes comes just days after President Trump threatened China with an additional 100 percent tariff and more export controls on software. The US and China have also started charging 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 reports that Apple’s rumored smart home display hub, indoor security cameras, and a “more advanced tabletop robot” are set to be manufactured in Vietnam, in an effort to shift manufacturing away from China.