21-May-2025 :

AMD has announced the divestiture of ZT Systems’ server-manufacturing business to electronics manufacturing services provider Sanmina in a $3 billion transaction. The deal includes $2.25 billion in cash and $300 million in stock, plus a $450 million contingent payment based on future financial performance, according to Reuters.
The sale follows AMD’s $4.9 billion acquisition of ZT Systems in August 2024, a move aimed at expanding its presence in AI and cloud infrastructure. AMD had previously disclosed its intent to spin off ZT’s manufacturing segment after the acquisition closed, which formally occurred in March 2025.
With this transaction, AMD retains ownership of ZT Systems’ rack-scale AI design business, while Sanmina becomes the preferred manufacturer for AMD’s new product introductions in rack and cluster-scale AI solutions.
AMD stated that the deal will allow it to focus on higher-value design work while leveraging Sanmina’s U.S.-based manufacturing expertise. Forrest Norrod, EVP and GM of AMD’s data center solutions, said the partnership with Sanmina would “accelerate quality and time-to-market” for enterprise AI customers.
The divestiture is expected to close by the end of 2025, pending regulatory approvals. It reflects a broader trend of AI hardware companies streamlining operations to focus on design and IP, while outsourcing infrastructure manufacturing to specialized firms like Sanmina.