Microsoft (NASDAQ:MSFT) aims to produce the majority of its new products outside of China as early as next year, while Amazon Web Services (NASDAQ:AMZN) is expanding its supply chain shift down to the component level, sources briefed on the matter told Nikkei Asia.
The Windows–maker has reportedly asked multiple suppliers to help prepare “out of China” production for its Surface laptop computers and data center servers, including key components and assembly, starting next year. Microsoft entered the China market in 1992.
Meanwhile, AWS is also among the U.S. tech companies adopting non-China production, particularly for the production of its sensitive AI data center servers.
According to the report, AWS has even looked at the feasibility of reducing its sourcing from longtime PCB supplier SYE, even though the Chinese company has production options outside of China.
The development comes as President Trump on Wednesday confirmed that trade tensions with China remain high, telling a reporter who asked whether the two countries are headed for a prolonged trade war, “Well you’re in one now.”
On Friday, Trump said the U.S. would impose an additional 100% tariff on Chinese goods starting on Nov. 1 over Beijing’s plan to impose new export controls on rare earth minerals.