AMD strikes a deal to sell ZT Systems’ server-manufacturing business for $3B
Semiconductor giant AMD followed by his plan to eliminate the Server production company from ZT Systems.
AMD has announced On Monday it sold the Server production company of ZT Systems to electronic production services company Sanmina. The $ 3 billion deal is a mix of cash and shares: $ 2.25 billion in cash, a premium of $ 300 million including 50% cash and 50% equity, and a conditional payment of $ 450 million based on financial performance in the next three years, According to Reuters.
The deal is expected to close at the end of 2025, subject to approval of the regulations. After this rejection, AMD will maintain control over the Rack scale AI Solutions Design Business from ZT Systems.
This announcement is not a shock. When AMD announced its intention to acquire ZT systems, an AI and cloud infrastructure company, for $ 4.9 billion in August 2024, the company said at the time that it was planning to divest that part of the activities of ZT Systems after the formally closed deal. According to Reuters, AMD’s takeover of ZT systems is officially closed in March 2025.
In addition to this announcement, AMD said that Sanmina will become a “preference” new product introduction production partner for AMD Cloud Rack and AI solutions on cluster scale.
“By combining the deep experience of our AI Systems Design team with our new preference NPI partnership with Sanmina, we expect to strengthen our American production options for Rack and Cluster scale AI systems in the field of cluster scale and to accelerate the quality and time of the company for our cloud clients,” said Forrestklanten, said Forrestklanten, said Forrestklanten, said Forrestklanten, Forrestklanten, said Forrest Klanten, Forrest Klanten, forrest clients, forrest. Vice-Vice-Vice-Vice manager, Datacenter solutions, the announcement of the business company, in the announcement of the company.
WAN reached for AMD for comment.
