Microsoft, AWS, and Google are trying to significantly reduce China’s role in their supply chains

As geopolitical tensions escalate between the United States and China, technology giants Microsoft, Amazon and Google are stepping up efforts to move production of their products and data centers outside China, the Nikkei newspaper reported, citing sources in the supply chain.

In particular, Microsoft wants to source up to 80% of the components needed to manufacture Surface laptops and tablets, as well as its data centers, outside China as soon as 2026, the report said. The Nikkei website quoted a supply chain source as saying that the scope of the change is “very broad” and includes components and assembly for the company’s future laptops and server products.

The company is reportedly asking its existing partners to set up manufacturing capabilities outside the country starting next year, and it is also seeking to move some of the production of its Xbox gaming consoles to other parts of Asia.

Meanwhile, Amazon Web Services is considering purchasing fewer printed circuit boards for its AI data centers from its legacy supplier SYE, and has assessed what it might need to do. The report said that Google is pressuring its suppliers to increase server production in Thailand, where it has already secured multiple partners for spare parts, components and assembly.

However, the Nikkei noted that moving production out of the country so quickly would be difficult, given the wide range of components involved and the technological and manufacturing prowess of their Chinese partners.

The news follows a wave of retaliatory measures from both China and the United States, which have taken turns imposing increased tariffs on each other, tightening export controls on critical components and resources, and restricting what technology can be sold.

Microsoft, Google and Amazon did not immediately respond to requests for comment.