AMD Moves Forward with Spin-Off of ZT Systems’ Server Business
In a strategic move to streamline its operations, semiconductor leader AMD has announced the sale of ZT Systems’ server-manufacturing division to electronic manufacturing services giant Sanmina. This significant deal is valued at $3 billion and comprises a mix of cash, equity, and performance-based payments.
The transaction includes $2.25 billion in cash, along with a $300 million premium split evenly between cash and stock. Additionally, there’s a $450 million contingent payment contingent on ZT Systems’ financial performance over the next three years. The deal is expected to close by the end of 2025, pending regulatory approval.
Following the sale, AMD will retain control of ZT Systems’ rack-scale AI solutions design business, positioning itself to continue innovating in AI and cloud infrastructure.
This move aligns with AMD’s previous plans. When AMD announced its intent to acquire ZT Systems for nearly $4.9 billion in August 2024, the company clarified that it would divest the server manufacturing segment after closing the acquisition. The acquisition officially wrapped up in March 2025.
As part of the new arrangement, Sanmina will serve as a “preferred” partner for AMD’s product introduction (NPI) processes related to cloud rack and cluster-scale AI solutions. This partnership aims to boost AMD’s U.S.-based manufacturing capabilities, particularly in AI systems, and accelerate delivery times and quality for cloud customers.
“By combining our deep expertise in AI systems design with our new preferred manufacturing partnership with Sanmina, we’re strengthening our U.S. manufacturing footprint for rack and cluster-scale AI solutions,” said Forrest Norrod, AMD’s EVP and GM of the Data Center Solutions business. “This will help us deliver faster, more reliable solutions to our cloud customers.”
Stay tuned for further updates as AMD continues to refine its focus on high-performance AI and cloud infrastructure.
