Advanced Micro Devices (AMD) has entered into a definitive agreement to sell the data center infrastructure manufacturing business of its subsidiary, ZT Systems, to Sanmina Corporation for up to $3 billion. The transaction comprises $2.25 billion in cash, a $300 million premium split evenly between cash and equity, and a contingent payment of up to $450 million based on future financial performance. While AMD retains ZT Systems’ AI systems design and customer enablement teams, Sanmina will become AMD’s preferred new product introduction (NPI) manufacturing partner for cloud rack and cluster-scale AI solutions.
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“By combining the deep experience of our AI systems design team with our new preferred NPI partnership with Sanmina, we expect to strengthen our U.S.-based manufacturing capabilities for rack and cluster-scale AI systems and accelerate quality and time-to-market for our cloud customers,” said Forrest Norrod, executive vice president and general manager of AMD’s Data Center Solutions business unit. The acquisition is expected to enhance Sanmina’s position in the cloud and AI infrastructure market, leveraging ZT Systems’ advanced liquid cooling capabilities and manufacturing facilities in New Jersey, Texas, and the Netherlands. The deal, subject to regulatory approvals, is anticipated to close by the end of 2025.