Transformational Acquisition Complements Sanmina’s Comprehensive Capabilities, Accelerates Entry into Cloud and AI Market
Sanmina Corporation, announced it has completed its acquisition of the ZT Systems data center infrastructure manufacturing business from AMD. The combination positions Sanmina as a leader in the Cloud and AI end-market, enabling the company to further capitalize on significant growth opportunities.
As part of the agreement, Sanmina and AMD have committed to a strategic partnership where Sanmina is a U.S.-based, preferred new product introduction (NPI) manufacturing partner to accelerate quality and time-to-deployment of AMD cloud rack and cluster-scale AI solutions.
“I am pleased we were able to close the acquisition quickly and ahead of schedule,” stated Jure Sola, Chairman and CEO of Sanmina Corporation. “The addition of ZT Systems significantly enhances our scale and deepens our engagement within the fast-growing Cloud and AI end-market. It expands our industry-leading capacity, bolsters our comprehensive end-to-end capabilities and reinforces Sanmina’s position as a trusted partner for mission-critical digital infrastructure globally. Our strategic partnership with AMD will bring solutions from concept to deployment with quality, speed and flexibility at scale. We are thrilled to officially welcome the ZT Systems team to Sanmina.”
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Compelling Strategic Rationale
- Increased Scale and High-Value End-Market Exposure: The addition of ZT Systems significantly enhances Sanmina’s position in the fast-growing Cloud and AI end-market.
- Broadens and Deepens Cloud and AI Hyperscaler Customer Relationships: Through this transaction, Sanmina is well-positioned to both expand and deepen relationships with existing customers by offering a more comprehensive, integrated solution from a trusted partner, while also adding new customers through ZT Systems’ relationships with hyperscalers.
- Brings Industry-Leading Manufacturing Capacity and Know-How to Sanmina’s Existing Footprint: ZT Systems brings large state-of-the-art manufacturing facilities located in New Jersey and Texas, with large amounts of power and advanced liquid cooling capabilities, as well as an operation in the Netherlands, complementing Sanmina’s existing U.S. and global manufacturing footprint.
- Reinforces Sanmina’s Capabilities as a Leading End-To-End Manufacturing Partner for Mission-Critical Technologies: The combination enhances Sanmina’s position as an industry leader and bolsters the Company’s opportunities to capitalize on the increased demand for data center infrastructure. The addition of ZT Systems’ capabilities to Sanmina’s global portfolio, mission-critical technologies and vertical integration enables solutions for the entire product lifecycle: design, engineering, manufacturing and fulfillment.
- Enhances Sanmina’s Ability to Support a Broad Customer Base in the Cloud and AI End-Market: The addition of ZT Systems establishes Sanmina’s position in the Cloud and AI end-market, creating an all-encompassing offering with the addition of full systems integration at scale. Sanmina will now have the capabilities needed to partner closely with both hyperscaler and OEM customers across all platforms and technologies in the industry.
Source: Sanmina