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2mo ago

AMD Finalizes $3 Billion Sale of ZT Systems' Manufacturing Arm to Sanmina

The deal strengthens U.S.-based AI hardware production as AMD shifts focus to design-led growth and retains ZT Systems' AI design expertise.

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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 will sell ZT Systems' server-manufacturing business to Sanmina for $3 billion, comprising $2.25 billion in cash, a $300 million premium split between cash and equity, and a $450 million performance-based contingent payment.
  • Sanmina will become AMD's preferred U.S. manufacturing partner for rack and cluster-scale AI solutions, enhancing time-to-market and quality for cloud customers.
  • The divestiture aligns with AMD's strategy to focus on AI systems design while advancing U.S.-based manufacturing capabilities for AI hardware.
  • The transaction is expected to close by late 2025, pending regulatory approvals and standard conditions.
  • AMD continues to expand its global AI infrastructure footprint, including a collaboration with Saudi Arabia's HUMAIN to deploy 500 megawatts of AI compute capacity over the next five years.