Microsoft packing bags to move manufacturing out of China

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00:00Microsoft Packing Bags to Move Manufacturing Out of China

00:03Donald Trump has been shouting for years that big tech should ditch China,

00:08and now, it looks like Silicon Valley's biggest names are actually listening.

00:12According to a new report from Nikkei Asia,

00:14Microsoft has begun preparing to relocate parts of its production out of China,

00:18marking the latest twist in the ongoing relationship between U.S. tech companies and Beijing.

00:24Sources say Microsoft has asked suppliers to gear up for out-of-China production of surface laptops

00:29and data center servers, with manufacturing slated to start elsewhere by 2026.

00:34The company has already begun shifting server production this year,

00:37and Xbox consoles may be next.

00:39Microsoft isn't alone.

00:41Amazon Web Services is reportedly exploring moving its AI data center server production out of China,

00:46while Google is nudging suppliers to expand capacity in Thailand.

00:51The tech giants are quietly packing their factories.

00:54This shift comes as the U.S.-China tech war heats up again.

00:57Trump has threatened to slap 100% tariffs on Chinese goods,

01:02plus expand export controls on critical software.

01:05For companies with deep roots in Chinese supply chains,

01:08that's a financial earthquake waiting to happen.

01:10China, meanwhile, isn't just sitting back.

01:13It's tightening control over rare-earth minerals,

01:15the lifeblood of modern chips,

01:17and launching antitrust probes against companies like NVIDIA and Qualcomm.

01:21The message is clear.

01:22Leaving won't be painless.

01:24As one source put it,

01:26removing Chinese suppliers is very difficult in real practice.

01:30This tech decoupling may take years,

01:32but with tariffs looming and tensions rising,

01:34tech giants are realizing they might have to move out of China ready or not.