As trade tensions between the US and China again escalate ahead of a planned summit between President Trump and his Chinese counterpart, Xi Jinping, global tech giants are again re-calibrating their supply chain exposures, with Microsoft reportedly the latest entrant in this convoluted melee.
Microsoft Reportedly Moving The Production Of Its Surface Laptops And Xbox Consoles Out Of China
Nikkei Asia is now reporting that the Redmond giant is looking to move the Surface laptop’s components manufacturing cadence and the associated assembly line out of China by 2026. The report remains silent on the targeted destination for these processes.
The report notes that Microsoft has already shifted some of its server production activities out of China, and is looking to produce more of its Xbox consoles in a third country as well.
The Eroding Geopolitical Dynamics Between The US And China
This comes as Apple is now reportedly looking to manufacture a whole range of its upcoming home devices in Vietnam by leveraging BYD’s manufacturing facilities in the country. These devices include a HomePod with a 7-inch screen, security cameras, and a dedicated tabletop AI robot.
Meanwhile, the geopolitical tensions between the US and China remain elevated, with the latter’s renewed curbs on rare earth metals export acting as the latest irritant in the already-complex relationship dynamics between the two countries.
For his part, President Trump has threatened to impose a 100 percent tariff on top of existing levies on Chinese imports, bringing the magnitude of these punitive levies to 130 percent, if implemented.
Microsoft Is Ditching China For Its Surface Laptops And Xbox
