AMD is divesting ZT Systems' server-manufacturing business to Sanmina for $3 billion, aimed at enhancing AI and cloud infrastructure. The deal, a mix of cash and stocks, includes performance-based payments and is expected to finalize by end of 2025. This move follows AMD's acquisition of ZT Systems for $4.9 billion in 2024, with plans announced to divest the server business thereafter. Meanwhile, AMD retains ZT's AI solutions design unit and establishes Sanmina as a preferred manufacturing partner to improve its U.S.-based capabilities.
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.
The $3 billion deal is a mix of cash and stock: $2.25 billion in cash, a $300 million premium including 50% cash and 50% equity, and a $450 million contingent payment based on financial performance over the next three years.
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