AMD announced that it entered into a definitive agreement to sell ZT Systems’ U.S.-headquartered data center infrastructure manufacturing business to integrated manufacturing solutions company Sanmina.
As part of the transaction, Sanmina becomes a preferred new product introduction (NPI) 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 $3 billion in cash and stock, inclusive of a contingent payment of up to $450 million 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.
“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,” AMD executive Forrest Norrod said.
Sanmina is a U.S.-headquartered integrated manufacturing solutions provider that serves the fastest growing segments of global Electronic Manufacturing Services (EMS), offering end-to-end design, manufacturing, logistics and repair solutions for OEMs across a variety of industries.
“ZT Systems’ liquid cooling capabilities, high-quality manufacturing capacity and significant cloud and AI infrastructure experience are the perfect complement to Sanmina’s global portfolio, mission-critical technologies and vertical integration capabilities,” Sanmina Corporation Chairman and CEO Jure Sola said.
