Microsoft Reportedly Moving Surface Manufacturing Out Of China, Could Do Same With Xbox

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Microsoft is planning to shift production of its Surface devices away from China, potentially as soon as 2026, according to a report from Nikkei.

According to a recent report, Microsoft is planning to shift its data center servers, component manufacturing, and device assembly operations away from the country. The company has reportedly been working with various suppliers to prepare for this relocation.

According to a supply chain executive who spoke with Nikkei, Microsoft is planning to move all production of components, parts, and assembly for new notebook computers and server products outside of China, with the earliest possible timeframe being 2026.

According to one source, Microsoft has begun shifting server production away from China. The company reportedly wants at least 80% of the parts used to build those servers to come from countries other than China.

According to Nikkei, Microsoft is also working to make more Xbox consoles outside of China, alongside its Surface devices. However, there are currently no plans to completely move all Xbox manufacturing away from China.

Microsoft is sharing its manufacturing plans at a time when trade relations between the U.S. and China are strained. President Trump has proposed significant tariffs on Chinese goods starting November 1st, but discussions between Trump and China’s President Xi Jinping might ease these tensions.

TopMob has asked Microsoft for a statement about this report. We will update the story if we receive one.

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2025-10-16 21:48