Semiconductor giant AMD has implemented plans to spin out ZT Systems’ server manufacturing business.
AMD announced on Monday that it is selling ZT Systems’ server manufacturing business to electronic manufacturing services company Sanmina. The $3 billion transaction is a mix of cash and stocks. $2.25 billion in cash. A $300 million premium, including 50% cash and 50% stake. A $450 million conditional payment based on financial performance over the next three years, according to Reuters.
The transaction is expected to close by the end of 2025, subject to regulatory approval. After this sale, AMD will remain in control of ZT Systems’ Rack Scale AI Solutions Design Business.
This announcement is not a shock. When AMD announced its intention to acquire ZT Systems, an AI and cloud infrastructure company, in August 2024 for $4.9 billion, the company said it plans to sell a portion of its ZT Systems business after the deal officially shut down. According to Reuters, AMD’s acquisition of ZT system was officially closed in March 2025.
In addition to the announcement, AMD said that Sanmina will become a manufacturing partner for its “priority” new products in AMD cloud racks and cluster scale AI solutions.
“We hope that by combining the deep experience of our AI Systems Design Team with our new priority NPI partnership with Sanmina, we will enhance US-based manufacturing capabilities for rack and cluster-scale AI systems, accelerating the quality and time to market for our cloud customers.”
TechCrunch reached out to AMD for comment.