AMD to divest ZT Systems’ data center infrastructure manufacturing for $3B

AMD (AMD) has entered into a definitive agreement to sell ZT Systems’ U.S.-headquartered data center infrastructure manufacturing business to Sanmina (SANM). As part of the transaction, Sanmina becomes a preferred new product introduction manufacturing partner for AMD cloud rack and cluster-scale AI solutions. AMD will retain ZT Systems’ design and customer enablement teams to accelerate the quality and time-to-deployment of AMD AI systems for cloud customers. Sanmina will purchase the manufacturing business from AMD for $3B in cash and stock, inclusive of a contingent payment of up to $450M and subject to customary adjustments for working capital and other items. The transaction is expected to close near the end of 2025, subject to regulatory approvals and customary closing conditions. The intent to seek a strategic partner to acquire ZT Systems’ world-class data center infrastructure manufacturing business was announced in August 2024 at the time of the original acquisition announcement.