AMD to sell ZT Systems' manufacturing business to Sanmina for $3 billion

AMD has entered into a definitive agreement to sell ZT Systems’ U.S.-headquartered data center infrastructure manufacturing business to Sanmina for $3 billion in cash and stock. This agreement includes a contingent payment of up to $450 million and is subject to regulatory approvals and customary closing conditions, with completion expected near the end of 2025.

As part of the transaction, Sanmina becomes a preferred new product introduction (NPI) manufacturing partner for AMD’s cloud rack and cluster-scale Artificial Intelligence (AI) solutions. Meanwhile, AMD will retain ZT Systems’ design and customer enablement teams, aiming to enhance quality and time-to-deployment for its AI systems.

Forrest Norrod, AMD's executive vice president and general manager of the Data Center Solutions business unit, stated the company anticipates this partnership will bolster U.S.-based manufacturing capabilities while delivering superior quality and efficiency for cloud customers. Sanmina's acquisition aims to integrate ZT Systems’ liquid cooling capabilities and significant experience in cloud and AI infrastructure.

Jure Sola, Sanmina's Chairman and CEO, expressed confidence that joining forces with ZT Systems will allow Sanmina to provide competitive advantages throughout the product lifecycle. Furthermore, the ongoing collaboration with AMD is integral to their strategy.

Morgan Stanley & Co. LLC is serving as the exclusive financial advisor to AMD, and Latham & Watkins LLP is the legal advisor for the transaction.