AMD Sells ZT Systems' Server Manufacturing Business to Sanmina for $3 Billion
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AMD strikes a deal to sell ZT Systems' server-manufacturing business for $3B | TechCrunch
Semiconductor giant AMD followed through with its plan to spin out ZT Systems' server-manufacturing business. AMD announced on Monday that it was selling ZT Systems' server-manufacturing business to electronic manufacturing services company Sanmina. The $3 billion deal is a mix of cash and stock:
[2]
AMD sells ZT Systems' server unit to Sanmina for $3 billion
AMD has completed its plan to spin out ZT Systems' server-manufacturing business, announcing on Monday that it is selling the division to electronic manufacturing services company Sanmina for $3 billion. The deal is structured as a mix of cash and stock: $2.25 billion in cash, a $300 million
[3]
AMD to sell ZT Systems' server-manufacturing business to Sanmina in $3 billion deal
AMD has agreed to sell the server-manufacturing business of recently acquired ZT Systems to Sanmina in a $3 billion deal, making the contract manufacturer its partner for building AI systems as the chipmaker works to onshore supply chains. AMD had announced a $4.9 billion buyout of ZT Systems last
[4]
AMD Announces Agreement to Divest ZT Systems Data Center Infrastructure Manufacturing Business to Sanmina - Advanced Micro Devices (NASDAQ:AMD), Sanmina (NASDAQ:SANM)
$3 billion in cash and stock, inclusive of a contingent payment of up to $450 millionAMD retains ZT Systems' rack-scale AI solutions design and customer enablement expertise to accelerate quality and time-to-deployment for cloud customersDivestiture and preferred NPI manufacturing partnership with
[5]
AMD Enters Into An Agreement With Sanmina To Sell A Part Of ZT Systems For $3 Billion, While Retaining ZT's Server Design And Customer Enablement Expertise
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. In a largely expected development, AMD has entered into a definitive agreement to sell ZT Systems' data center infrastructure and manufacturing business to
[6]
AMD To Sell ZT Systems' Server Manufacturing Unit To Sanmina For $3B
Having sought a buyer for ZT Systems' server manufacturing unit since the deal to acquire the company was announced last August, AMD says Sanmina will become a preferred new product introduction manufacturing partner for its cloud rack and cluster-scale AI solutions. AMD said it has reached an
[7]
AMD Sells Off A $5 Billion Powerhouse: What's The Catch In This $3 Billion Deal? - Advanced Micro Devices (NASDAQ:AMD)
Advanced Micro Devices, Inc. AMD shares are trading lower on Monday after the company disclosed a definitive deal to sell its ZT Systems' U.S.-based data center infrastructure manufacturing business to Sanmina Corporation SANM for $3 billion in cash and stock. Details: Sanmina will acquire the
[8]
Sanmina set to acquire ZT Systems for cloud, AI growth By Investing.com
SAN JOSE - Sanmina Corporation (NASDAQ: SANM), a notable player in integrated manufacturing solutions, has announced a definitive agreement to purchase the data center infrastructure manufacturing business of ZT Systems from AMD (NASDAQ: AMD). This acquisition, valued at $2.55 billion in cash and
[9]
AMD to sell ZT Systems' server-manufacturing business to Sanmina in $3 billion deal
(Reuters) -AMD will sell the server-manufacturing business of recently acquired ZT Systems to Sanmina in a $3 billion deal, making the U.S.-based contract manufacturer its partner for building AI hardware as the chip designer works to onshore supply chains. The deal, announced on Monday,
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AMD has agreed to sell ZT Systems' server manufacturing business to Sanmina for $3 billion, retaining the AI solutions design expertise while strengthening US-based manufacturing capabilities for AI systems.
AMD Divests ZT Systems' Server Manufacturing Business
Advanced Micro Devices (AMD) has announced a significant move in its business strategy, agreeing to sell ZT Systems' server manufacturing business to Sanmina, a leading integrated manufacturing solutions company, for $3 billion
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. This decision comes shortly after AMD's acquisition of ZT Systems, an AI and cloud infrastructure company, for $4.9 billion in August 20243
.Deal Structure and Financial Details
The $3 billion deal is structured as follows:
- $2.25 billion in cash
- A $300 million premium (50% cash and 50% equity)
- A contingent payment of $450 million based on financial performance over the next three years
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The transaction is expected to close by the end of 2025, subject to regulatory approvals and customary closing conditions
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.Strategic Implications for AMD
While divesting the server manufacturing business, AMD will retain ZT Systems' rack-scale AI solutions design and customer enablement expertise
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. This move aligns with AMD's strategy to focus on high-value AI and cloud infrastructure solutions while partnering for manufacturing capabilities.Forrest Norrod, Executive Vice President of AMD's data center solutions business unit, stated:
"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."
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Sanmina's Role and Benefits
As part of the agreement, Sanmina will become AMD's preferred new product introduction (NPI) manufacturing partner for cloud rack and cluster-scale AI solutions
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. This partnership is expected to enhance AMD's U.S.-based manufacturing capabilities and improve time-to-market for its cloud customers2
.Related Stories
Broader Context: AMD's AI and U.S. Manufacturing Focus
This deal is part of AMD's broader strategy to strengthen its position in the AI market and increase its U.S.-based manufacturing capabilities. The company has already taken steps to produce more of its chips on American soil, with plans to manufacture key processor chips at TSMC's new production site in Arizona
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.Additional AMD Developments
Concurrent with this announcement, AMD has made other significant moves:
- Increased share buyback authorization by $6 billion, bringing the total to approximately $10 billion
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. - Partnered with HUMAIN, an AI-focused subsidiary of Saudi Arabia's Public Investment Fund, to create a $10 billion fund for deploying 500 megawatts of AI compute capacity over the next five years
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These developments underscore AMD's commitment to expanding its AI capabilities and strengthening its market position in the rapidly evolving semiconductor and AI industries.
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