AMD has completed its plan to spin out ZT Systems’ server-manufacturing business, announcing on Monday that it is selling the division to electronic manufacturing services company Sanmina for $3 billion.
The deal is structured as a mix of cash and stock: $2.25 billion in cash, a $300 million premium split equally between cash and equity, and a $450 million contingent payment based on financial performance over the next three years.
The transaction is expected to close by the end of 2025, pending regulatory approval. Following the divestiture, AMD will retain control of ZT Systems’ rack-scale AI solutions design business.
This development is in line with AMD’s initial plan when it announced its intent to acquire ZT Systems, an AI and cloud infrastructure company, for $4.9 billion in August 2024. At the time, AMD stated that it would divest ZT Systems’ server-manufacturing business after the acquisition closed, which it did in March 2025.
As part of the agreement, Sanmina will become AMD’s “preferred” new product introduction manufacturing partner for cloud rack and cluster-scale AI solutions.
Forrest Norrod, executive vice president and general manager of AMD‘s data center solutions business unit, said that the partnership will strengthen AMD’s U.S.-based manufacturing capabilities for rack and cluster-scale AI systems and accelerate quality and time-to-market for cloud customers.
Norrod’s statement highlighted that AMD will combine its AI systems design team’s expertise with its new partnership with Sanmina to achieve these goals.
