AMD has announced they will sell ZT Systems’ U.S.-based data center manufacturing business to Sanmina, a leading integrated manufacturing solutions provider. After this deal, Sanmina will be the preferred partner for AMD’s new products related to cloud and AI solutions.
AMD will keep ZT Systems’ top design and customer support teams to help improve the quality and speed of deploying AMD’s AI systems for cloud customers.
Sanmina will buy the manufacturing business from AMD for $3 billion in cash and stock, which includes a potential extra payment of up to $450 million. This amount may change based on standard adjustments for working capital and other issues.
The deal is expected to finalize by the end of 2025 but must first get approval from regulatory authorities. In August 2024, AMD announced they were looking for a strategic partner to take over ZT Systems’ manufacturing business when they initially announced the acquisition.
“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.”
“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.”
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