AMD has officially announced its definitive agreement to sell the manufacturing unit of ZT Systems´ data center infrastructure business to Sanmina. While the precise financial details are not disclosed, the deal involves a significant combination of cash and stock, and includes a potential contingent payment. This strategic move follows AMD´s acquisition of ZT Systems in March 2025 and comes after earlier reports that the company sought to divest the manufacturing facility to avoid direct competition with its data center customers.
According to AMD, retaining ZT Systems´ design and customer support teams will be pivotal for accelerating the rollout of its Artificial Intelligence systems tailored for cloud clients. By selling off the manufacturing arm but keeping core design expertise, AMD intends to focus on rapid development and integration of next-generation server and rack solutions without venturing into the manufacturing space that overlaps with its client base. Sanmina, a U.S.-based leader in integrated manufacturing and Electronic Manufacturing Services, is set to become AMD´s preferred partner for launching new products in cloud rack and large-scale Artificial Intelligence solutions, which will strengthen U.S.-based production capabilities and enhance time-to-market efficiency.
The sale process attracted interest from major industry players, such as Taiwanese firms Compal and Wiwynn, as well as U.S. electronics provider Jabil, while Inventec and Pegatron opted out of the bid. Ultimately, Sanmina emerged as the selected buyer, citing ZT Systems´ expertise in advanced manufacturing, liquid cooling, and large-scale Artificial Intelligence deployments as strategic assets. Both companies have expressed their mutual commitment to deepening their ongoing partnership, aiming to set new quality standards in manufacturing and deliver a competitive edge in data center solutions throughout the entire product lifecycle.
