AMD retains ZT Systems’ rack-scale AI solutions design and customer enablement expertise to accelerate quality and time-to-deployment for cloud customers
AMD has signed a definitive agreement to divest its U.S.-based data center infrastructure manufacturing business—acquired as part of ZT Systems—to Sanmina Corporation, a global leader in integrated manufacturing solutions. This strategic transaction also designates Sanmina as AMD’s preferred partner for new product introductions (NPI) related to its rack and cluster-scale AI infrastructure solutions.
As part of the deal, AMD will retain ZT Systems’ top-tier design and customer enablement teams, which will play a critical role in accelerating the development and deployment of AMD-powered AI systems for cloud infrastructure.
Under the terms of the agreement, Sanmina will acquire the manufacturing operations for approximately $3 billion in a combination of cash and stock. This amount includes a contingent payment of up to $450 million, and is subject to standard working capital and other adjustments. The transaction is expected to close by the end of 2025, pending regulatory approvals and customary closing conditions.
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The move follows AMD’s August 2024 announcement signaling its intention to find a strategic partner for the manufacturing portion of the ZT Systems business.
“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,” said Forrest Norrod, executive vice president and general manager, Data Center Solutions business unit at AMD. “The ZT Systems manufacturing business and its expert team remain a very important and strategic partner to AMD. We look forward to working with Sanmina to deliver world-class design, quality and manufacturing of AMD AI solutions supported by our open ecosystem approach.”
Headquartered in the U.S., Sanmina provides comprehensive Electronic Manufacturing Services (EMS), including product design, global manufacturing, logistics, and repair solutions. The company serves some of the fastest-growing markets across industries such as cloud infrastructure, telecom, automotive, and industrial.
“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,” said Jure Sola, Chairman and CEO of Sanmina Corporation. “Together, we will be better able to deliver a competitive advantage to our customers with solutions for the entire product lifecycle. We look forward to our ongoing partnership with AMD as we work together to set the standard for quality and flexibility to benefit the entire AI ecosystem.”
This strategic alignment marks a significant step forward for AMD’s AI platform evolution and reinforces the company’s commitment to U.S.-based innovation and manufacturing excellence in the era of accelerated computing.
