AMD completes sale of ZT Systems manufacturing unit to Sanmina

As part of the deal, AMD retains ZT Systems’ design and customer enablement teams, which will continue to support cloud and AI customers by accelerating quality and time-to-deployment for AMD AI systems. Sanmina will serve as a preferred new product introduction (NPI) manufacturing partner for AMD’s cloud rack and cluster-scale AI solutions.

“Rack-scale innovation marks the next chapter in the AMD data centre strategy,” said Forrest Norrod, executive vice president and general manager, Data Centre Solutions business unit at AMD, in a press release. “By extending our leadership from silicon to software to full systems, we’re giving cloud and AI customers an open, scalable path to deploy AMD performance faster than ever. Our strategic partnership with Sanmina brings US-based manufacturing strength together with AMD AI systems design and enablement expertise to deliver quality, speed and flexibility at scale.”

As previously reported, Sanmina will pay USD 2.25 billion in cash, along with a USD 300 million premium split equally between cash and equity, and a performance-based earnout of up to USD 450 million.