Microsoft is reportedly making changes to where its hardware is built. According to Nikkei, Microsoft is looking to move manufacturing of its Surface devices out of China as early as 2026.
The report (paywalled) says that Microsoft will look to move data center servers, component production, and device assembly out of the country. They say that Microsoft has asked multiple supppliers to help with preparation for the move.
“The scope is quite wide and covers components, parts and product assembly for new product introductions of both notebook computers and server products,” a supply chain executive told Nikkei. “Microsoft hopes all of these can be manufactured entirely outside of China starting from 2026 at the earliest.”
As far as server production, one source told the outlet that Microsoft had already started moving server production out of China. It’s said that Microsoft has requested “at least 80% of the bill of materials (BOM) for servers come from outside the country.”
In addition to the Surface production, Nikkei says that Microsoft is “pushing to increase non-China production of the Xbox videogame consoles”. That said, there hasn’t been any sort of requirement made to bring all Xbox manufacturing out of China yet.
This report of Microsoft’s manufacturing plans comes as trade tensions between China and the United States intensify. Donald Trump has threatened to place 100% tariffs on goods from China on November 1st, though a meeting between Trump and Chinese President Xi Jinping could cool those threats.
Insider Gaming has reached out to Microsoft for comment on the report. Should a response be received, it will be added to this story.
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Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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