AMD Pushes Forward With ZT Systems Server Unit Sale
AMD revealed plans to hand over ZT Systems’ server business to Sanmina, a company specializing in electronic manufacturing services. The sale, valued at $3 billion, involves a combination of cash, equity, and future contingent payments depending on the business’s performance through the next three years.
This transaction is poised to finalize by late 2025, pending approval from regulators. Once completed, AMD will continue overseeing ZT Systems’ rack-scale AI solutions design segment, ensuring continued influence in the AI sector.
Sanmina to Join AMD’s Manufacturing Ecosystem
With this divestment, Sanmina will take on the role of preferred manufacturing partner for AMD’s new cloud rack and cluster-scale AI products. AMD expects this collaboration to boost its domestic manufacturing capabilities and help deliver products to cloud customers more quickly with improved quality.
AMD’s intention to sell ZT Systems’ server manufacturing arm was disclosed when it first revealed the $4.9 billion ZT Systems acquisition plan in 2024. After finalizing the acquisition in March 2025, AMD, Sanmina made clear that offloading the manufacturing portion was a strategic move to focus on its AI and design strengths.
Executives from AMD highlighted that the partnership with Sanmina will accelerate speed to market for vital AI systems, providing enhanced solutions for their expanding cloud-focused client roster. As part of the arrangement, AMD expects to see an uplift in its US-based production amid increasing demand for large-scale computing solutions.
The market will be watching closely as regulatory approval moves forward, with Sanmina primed to play a significant role in AMD’s next generation of AI hardware. This ongoing reshaping of AMD’s hardware supply chain looks set to shape the competitive landscape for AI and server products in the years ahead.
