AMD Sells ZT Systems’ Server Manufacturing Unit to Sanmina in $3 Billion Deal

Semiconductor company AMD has finalized a $3 billion deal to sell ZT Systems’ server-manufacturing division to Sanmina, an electronic manufacturing services firm. The deal includes $2.25 billion in cash, a $300 million premium split equally between cash and equity, and an additional $450 million contingent on future performance over the next three years. This transaction is expected to be completed by the end of 2025, pending regulatory approval.

The move comes as part of AMD’s strategy following its acquisition of ZT Systems for $4.9 billion in August 2024. At that time, AMD had already indicated its intent to divest the server-manufacturing segment. The acquisition closed in March 2025. AMD will retain control over ZT Systems’ AI-focused rack-scale solution design business, aligning with its broader emphasis on AI and cloud infrastructure.

In tandem with the sale, AMD announced a strategic partnership with Sanmina, which will now serve as a preferred manufacturing partner for AMD’s cloud rack and cluster-scale AI systems. Forrest Norrod, executive vice president of AMD’s data center unit, stated that this partnership aims to boost U.S.-based manufacturing capabilities and improve the speed and quality of AI product delivery for cloud clients.