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

Amid rising geopolitical tensions 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 out of China, the Nikkei Shimbun reported, citing supply chain sources.

Specifically, Microsoft wants to manufacture up to 80% of the components needed to make its Surface notebooks, tablets and data centers outside China by as early as 2026, the report said. The Nikkei newspaper, citing supply chain sources, said the scope of the changes is “very broad” and will include parts and assemblies for the company’s future notebook and server products.

The company is asking existing partners to set up manufacturing capacity overseas starting next year, and is reportedly moving some Xbox game console production to other parts of Asia.

Meanwhile, Amazon Web Services is considering reducing the number of printed circuit boards it buys from longtime supplier SYE for its AI data centers and is conducting an assessment of what needs to be done. Google is also urging suppliers to ramp up server production in Thailand, and has already secured multiple partners for parts, components and assembly, the report said.

However, Nikkei pointed out that it would be difficult to move the production base overseas so quickly, given the huge variety of parts involved and the technological and manufacturing capabilities of the Chinese partners.

The news follows a series of retaliatory measures in which both China and the United States have alternately imposed additional tariffs, tightened export controls on critical components and resources, and restricted what technology can be sold.

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