Microsoft is building a factory in China to make the next version of its Zune player, according to this Marketwatch article.

Toshiba provided the parts and framework for the original Zune, which came out last November. According to the article, Microsoft wants to take a more direct role in the manufacturing for the second version.

The article seems to imply that Microsoft has dumped Toshiba. Microsoft isn't naming its new manufacturing partner but said the new factory will be in Doumen, China. That's the same city where the Xbox 360 video-game console is made by Flextronics International, according to Marketwatch.