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Microsoft to Shift 80% Production Out of China by 2026

10/16/2025

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Story summary
  • Microsoft plans to shift manufacturing of Surface laptops, tablets, and data centers out of China, beginning as early as 2026.
  • Microsoft aims for up to 80% of its components to be produced outside China.
  • Microsoft has begun relocating some server production and is exploring Xbox manufacturing in other Asian countries.
  • The move signals a broader trend of tech giants diversifying supply chains to mitigate geopolitical risks.