AMD Finalizes $3B Divestiture of ZT Systems’ Server Manufacturing Unit to Sanmina
By James Dargan · · 1 min read
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.
