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AMD Finalizes $3B Divestiture of ZT Systems’ Server Manufacturing Unit to Sanmina

AMD has officially divested the server manufacturing segment of ZT Systems to electronics manufacturer Sanmina in a $3 billion deal. The transaction includes $2.25 billion in cash, a $300 million premium split between cash and equity, and a $450 million performance-based payout over three years.

The move follows AMD’s $4.9 billion acquisition of ZT Systems in March 2025, a deal originally announced in August 2024. As previously outlined, AMD will retain ZT’s rack-scale AI systems design division, while Sanmina becomes a preferred manufacturing partner.

Forrest Norrod, EVP of AMD’s data center unit, said the partnership will strengthen domestic AI manufacturing and accelerate product delivery for cloud-scale customers. Completion is expected by year-end.

James Dargan
About the author
James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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