AMD has officially offloaded the server-manufacturing arm of ZT Systems to Sanmina in a $3 billion transaction, streamlining its AI infrastructure focus just months after acquiring the cloud hardware company.
The deal with Sanmina, an established electronics manufacturing services provider, includes $2.25 billion in cash, a $300 million premium split between cash and equity, and a $450 million earnout tied to future performance over the next three years. AMD confirmed the agreement will likely close by the end of 2025, pending regulatory approvals.
This move wasn’t unexpected. Back in August 2024, AMD had flagged its intention to spin off the server-manufacturing side of ZT Systems as part of its $4.9 billion acquisition of the AI and cloud infrastructure company. That acquisition officially closed in March 2025. The latest deal fulfills AMD’s original plan and refocuses its efforts on higher-margin AI systems design.
AMD Doubles Down on Rack-Scale AI Innovation
While shedding ZT’s server hardware manufacturing, AMD is retaining the rack-scale AI solutions design business—arguably the most strategic asset in the ZT acquisition. At the same time, AMD has designated Sanmina as a preferred partner for new product introductions (NPI), particularly for cloud rack and cluster-scale AI solutions.
Forrest Norrod, AMD’s EVP and GM of its data center unit, noted that the Sanmina partnership will enhance U.S.-based manufacturing capabilities and speed up delivery times. The move aligns with AMD’s push to strengthen its cloud and AI offerings as competition intensifies across hyperscaler infrastructure.
