AMD sells server-manufacturing business to Sanmina in $3 billion deal to strengthen AI hardware capabilities

From Yahoo Finance: 2025-05-19 07:44:00

AMD has agreed to sell ZT Systems’ server-manufacturing business to Sanmina in a $3 billion deal. This move aims to strengthen U.S.-based manufacturing capabilities for AI hardware. The deal reflects AMD’s focus on onshoring supply chains amidst trade tensions and Trump’s push for domestic semiconductor production. AMD will retain ZT’s AI systems design business, critical for meeting escalating computing demands. Sanmina will pay $2.25 billion in cash, with a $300 million premium in cash and equity. The deal also includes a $450 million contingent consideration based on the business’s performance over three years. Closing expected by year-end, with AMD eligible for up to $153 million if the deal is terminated.



Read more at Yahoo Finance: AMD to sell ZT Systems’ server-manufacturing business to Sanmina in $3 billion deal