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."

Microsoft plans to move manufacturing of Surface laptops, tablets, and data-center servers out of China starting in 2026 at the earliest. The shift will include components, parts, and assembly for future Surface hardware and server products. Some existing server production has already moved outside China, and Microsoft is also seeking to produce more Xbox consoles abroad. The potential changes follow escalating US-China trade tensions, including threatened tariffs, export controls on software, and reciprocal port fees, alongside tighter Chinese export rules on rare earths. Other companies, including Apple, are similarly diversifying production, with several devices reportedly slated for manufacture in Vietnam.

Read at The Verge