According to Nikkei, major U.S. tech companies are reportedly accelerating efforts to lessen their dependence on China. Sources indicate that Microsoft aims to produce most of its upcoming products outside the country as early as next year, while Amazon Web Services is extending its supply chain diversification down to the component level.

This is reportedly the first time such moves by major U.S. tech companies have reached all the way to the component and material level, covering items such as fibers, cables, connectors, passive parts, and printed circuit boards, the report adds.

Microsoft Targets 80% of Server Components from Outside China

For Microsoft, sources cited by the report say the company has asked several suppliers to prepare for production of its Surface laptop computers and data center servers outside China. The plan reportedly covers components, parts, and final assembly for new notebook and server products, with Microsoft aiming to have all of them manufactured entirely outside China as early as 2026.

In addition, Microsoft has reportedly already moved a significant share of its server production out of China since last year and has instructed that at least 80% of the server bill of materials (BOM) be sourced from outside the country. The company is also seeking to expand Xbox console production outside China, though a full relocation of manufacturing has yet to be implemented, according to sources cited by the report.

AWS Reportedly Eyes Shift Away from Chinese Component Supplier

Beyond Microsoft, sources cited by the report say AWS is also shifting to non-China production, particularly for its sensitive AI data center servers. Sources also indicate that AWS has examined the possibility of reducing its reliance on long-time PCB supplier SYE, even though the Chinese firm already maintains production facilities outside China.

Google and Apple Expand Production Beyond China

Google, meanwhile, is reportedly urging suppliers to rapidly scale up server manufacturing capacity in Thailand, where it now works with multiple partners—from assembly to component suppliers—to support its server production, according to the report.

In a similar move, The Verge, citing Bloomberg, reports that Apple is stepping up efforts to shift production away from China. The company reportedly plans to produce a range of new devices in Vietnam, including a smart home display hub, indoor security cameras, and a more advanced tabletop robot.

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(Photo credit: Microsoft)