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

The deal includes cash, equity, and contingent payments, with AMD retaining AI design operations and naming Sanmina its preferred U.S. manufacturing partner.

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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, marking a strategic shift toward AI systems design.
  • The payment structure includes $2.25 billion in cash, a $300 million cash-equity premium, and up to $450 million in contingent payments based on performance over three years.
  • AMD will retain ZT Systems' AI design business and designate Sanmina as its preferred manufacturing partner for AI data center systems in the U.S.
  • This divestiture aligns with AMD's broader strategy of focusing on high-margin AI infrastructure and strengthening domestic manufacturing capabilities.
  • The transaction is expected to close by the end of 2025, reinforcing AMD's commitment to onshoring supply chains and expanding its AI solutions portfolio.