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Semiconductor giant AMD has successfully spun out ZT Systems’ server-manufacturing business, following through with its plan. The company announced that it is selling this business to electronic manufacturing services company Sanmina in a $3 billion deal, which includes a mix of cash and stock. The deal is expected to close by the end of 2025, pending regulatory approval. After the divestiture, AMD will retain control of ZT Systems’ rack-scale AI solutions design business.
This move was not unexpected, as AMD had previously announced its intention to acquire ZT Systems in August 2024 and divest this part of the business after the deal closed. With the acquisition officially closing in March 2025, Sanmina will now become a “preferred” new product introduction manufacturing partner for 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, expressed confidence in the partnership with Sanmina, stating that it will strengthen U.S-based manufacturing capabilities for AI systems and enhance quality and time-to-market for cloud customers.
TechCrunch has reached out to AMD for further comment.
