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2d ago

AMD Finalizes $3 Billion Deal to Sell ZT Systems' Manufacturing Arm to Sanmina

The agreement retains AMD's AI design operations while establishing Sanmina as its preferred manufacturing partner for AI infrastructure solutions.

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CHONGQING, CHINA - MAY 04: In this photo illustration, the logo of Advanced Micro Devices, Inc. (AMD) is displayed on a smartphone screen, with the company's branding visible in the background, on May 04, 2025, in Chongqing, China. AMD is an American multinational semiconductor company headquartered in Santa Clara, California, known for developing computer processors, graphics cards, and related technologies for business and consumer markets. (Photo illustration by Cheng Xin/Getty Images)
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Overview

  • AMD has agreed to sell ZT Systems' server-manufacturing business to Sanmina for $3 billion, including $2.25 billion in cash, a $300 million premium split between cash and equity, and a $450 million performance-based payment over three years.
  • The transaction, pending regulatory approval, is expected to close by the end of 2025 and will make Sanmina AMD's preferred manufacturing partner for cloud rack and cluster-scale AI solutions.
  • AMD will retain ZT Systems' AI systems design business, focusing on accelerating the development and deployment of AI infrastructure for cloud customers.
  • This move aligns with AMD's broader strategy to enhance U.S.-based manufacturing capabilities and strengthen its supply chain resilience in the AI and semiconductor sectors.
  • Sanmina anticipates the acquisition will expand its scale and market presence in cloud and AI infrastructure, complementing its existing manufacturing and integration capabilities.