AMD to sell ZT Systems’ Server Business in $3 Billion Deal

AMD has announced it is selling the server-manufacturing part of ZT Systems to Sanmina, a company that makes electronics. The deal is worth $3 billion, made up of $2.25 billion in cash, a $300 million premium (half in cash, half in stock), and a $450 million payment depending on performance over the next three years. The deal should be finalized by the end of 2025, pending regulatory approval.

This move was expected, when AMD said it would buy ZT Systems for $4.9 billion in August 2024, it also shared plans to later sell off the server-making part of the business. AMD completed the ZT Systems purchase in March 2025.

Forrest Norrod, an AMD executive, said, "The partnership with Sanmina will help improve U.S.-based manufacturing and speed up the delivery of AI systems to cloud customers. 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.”

 

Based in San Jose, Calif., Sanmina employs about 34,000 people across 21 countries on four continents. Even after the sale, AMD will still keep control of ZT Systems’ AI-focused design business. In addition, AMD announced that Sanmina will now be its main partner for manufacturing new AI products for cloud data centers.