Microsoft Corp. (NASDAQ:MSFT) plans to shift most new product manufacturing out of China as early as next year, joining other U.S. tech giants in expanding production beyond the world's second-largest economy, according to a report published Thursday.

Server Production To Be Pushed Outside China: Report

The software giant is aiming to shift the production of its Surface laptops and data center servers, including key components and assembly, starting next year, reported Nikkei Asia, citing sources.

The company has already shifted a large part of its server production out of China and is now aiming to source at least 80% of the servers' bill of materials (BOM) from outside the country, the report said.

At the same time, Alphabet‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google is also urging suppliers to ...