AMD is reportedly preparing to divest its U.S.-based Artificial Intelligence server assembly facility, a move that has captured the attention of major Taiwanese original equipment manufacturers (OEMs) and American electronics producers. According to reports, Compal and Wiwynn have emerged as front-runners in the bidding process, with Jabil representing significant U.S. interest. The initial interest pool also included Inventec and Pegatron, yet both companies are said to have withdrawn from consideration. The bidding window is expected to be short, with AMD targeting a deal closure by the end of the quarter and a proposed price tag in the multi-billion dollar range. This consideration for sale follows only months after AMD acquired the assembly plant in a deal that also brought approximately 1,500 employees into the fold.
Industry analysts speculate that AMD’s quick move to offload the facility is strategic, meant to avoid direct competition with its own customers in the growing Artificial Intelligence server hardware market. By divesting, AMD may aim to strengthen relationships with major server integrators and OEMs, many of whom represent both clients and potential buyers. The move is seen as part of a broader industry trend in which semiconductor manufacturers focus on chip design and supply, leaving assembly and deployment to ecosystem partners.
For the top bidders, the purchase of AMD’s assembly plant offers an opportunity to strengthen or expand their North American production capabilities. Compal, in particular, is evaluating Texas as a target location, attracted by the state’s reliable power resources crucial for large-scale data center and server assembly. Wiwynn, meanwhile, has already begun scaling up its U.S. operations with a recent acquisition of a Texas facility, demonstrating its commitment to domestic server manufacturing. The outcome of AMD´s divestiture is expected to reshape the supplier landscape for Artificial Intelligence server infrastructure in the United States.
