Microsoft is planning to manufacture the majority of its new products, including Surface laptops and data center servers, outside of China beginning in 2026. The company has reportedly requested its suppliers to prepare for this production shift, which includes both key components and assembly. This strategic move is seen as a response to escalating trade tensions and geopolitical uncertainties between the United States and China, aligning Microsoft with other major US tech companies, like Amazon Web Services (AWS), that are diversifying their supply chains.