Microsoft, AWS accelerate supply chain shift out of China - Nikkei

Published 16/10/2025, 07:08
© Reuters

Investing.com-- Microsoft (NASDAQ:MSFT) plans to manufacture most of its new products outside China as early as next year, while Amazon (NASDAQ:AMZN) Web Services (AWS) is deepening its supply chain diversification to the component level, Nikkei Asia reported on Thursday, citing sources.

The moves mark an escalation in U.S. tech companies’ efforts to decouple from China amid rising Washington-Beijing tensions, the report said.

Microsoft has asked suppliers to prepare “out of China” production for Surface laptops and data center servers from 2026, Nikkei reported. The company has already shifted a large portion of server output and aims for 80% of related materials to come from outside China, the report said.

AWS is also seeking to limit Chinese suppliers for sensitive AI server components, though executives acknowledged the difficulty of replacing established partners, according to the Nikkei report. Google (NASDAQ:GOOGL) is expanding server production in Thailand, the report added.

The efforts come as geopolitical frictions and export controls spur U.S. tech giants to hedge against potential supply disruptions.

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