Google is taking proactive measures to counter the possible effects of the U.S. trade war with China. A report today revealed that Google is shifting Nest and server hardware manufacturing meant for the United States out of China into Taiwan.
According to Bloomberg, Google has “already shifted much of its production of U.S.-bound motherboards to Taiwan.” These components are crucial to powering data centers around the world, with Google taking a more proactive approach than its competitors in light of tariffs and “an increasingly hostile government in Beijing.”
While the likes of Amazon (AWS), Microsoft (Azure), and Facebook purchase complete server racks, Google only procures individual components for later assembly. Those motherboards — categorized as “printed circuit board assembly” — are subject to 25% tariffs when imported into the U.S., while server racks are not.