AMD Acquires ZT Systems Server Business for $3 Billion

AMD Divests ZT Systems’ Server Manufacturing to Sanmina

Leading semiconductor manufacturer AMD has completed the planned separation of ZT Systems’ server manufacturing operations.

Details of the Transaction

On Monday, AMD revealed the sale of ZT Systems’ server manufacturing division to Sanmina, a prominent electronic manufacturing services provider. The transaction is valued at $3 billion and comprises a combination of cash and stock.

• $2.25 billion will be paid in cash.
• A $300 million premium is included, split equally between cash and equity.
• An additional $450 million is contingent upon financial performance over the subsequent three years, as reported by Reuters.

The completion of this deal is anticipated by the end of 2025, pending necessary regulatory approvals.

Continued Focus on AI Solutions

Following this divestiture, AMD will retain ownership and control of ZT Systems’ business focused on the design of rack-scale AI solutions.

This move was foreshadowed when AMD initially announced its intention to acquire ZT Systems, an AI and cloud infrastructure firm, for $4.9 billion in August 2024. At that time, the company indicated plans to divest the server manufacturing portion of ZT Systems following the acquisition’s finalization.

The acquisition of ZT Systems was officially concluded in March 2025, as per Reuters reports.

Strategic Partnership with Sanmina

In conjunction with this announcement, AMD stated that Sanmina will serve as a “preferred” partner for new product introduction (NPI) manufacturing related to AMD’s cloud rack and cluster-scale AI solutions.

Forrest Norrod, executive vice president and general manager of AMD’s data center solutions business unit, stated, “By integrating the specialized expertise of our AI systems design team with our new preferred NPI partnership with Sanmina, we anticipate bolstering our U.S.-based manufacturing capacity for rack and cluster-scale AI systems and expediting both quality and time-to-market for our cloud clientele.”

TechCrunch contacted AMD for further commentary.