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.