Sanmina to acquire ZT Systems’ manufacturing arm from AMD in $3 billion deal
Less than two months after acquiring ZT Systems, AMD is divesting the company's data centre infrastructure manufacturing operations to Sanmina Corporation in a transaction valued at up to USD 3 billion.
The move expands Sanmina's role in the global Cloud and AI infrastructure supply chain and formalises a strategic manufacturing partnership between the two companies.
Under the terms of the agreement, 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. The deal is expected to close near the end of the year.
ZT Systems, acquired by AMD on March 31, 2025, is a supplier of Cloud and AI infrastructure to hyperscale data centre operators.
As a combined company, Sanmina expects to strengthen its end-to-end component technology, systems integration and supply chain solutions to deliver even greater value for its customers. ZT Systems' current annual net revenue run-rate is approximately USD 5–6 billion, and the outlook ahead is promising as new accelerated compute platforms are launched. The company has advanced liquid cooling capabilities and manufacturing facilities in New Jersey, Texas i the US and in the Netherlands.
The addition of ZT Systems' manufacturing business significantly enhances Sanmina's position in the fast-growing Cloud and AI end-market. It is expected to double Sanmina's revenue scale in three years.
"The acquisition of ZT Systems' manufacturing operations positions Sanmina as an industry leader in the Cloud and AI ecosystem and enables us to further capitalise on the significant growth opportunity of this market," stated Jure Sola, Chairman and CEO of Sanmina Corporation, in a press release. "Combining Sanmina's global expertise and vertical integration capabilities with ZT Systems' high-quality manufacturing capacity in the U.S. and Europe and extensive experience with critical Cloud and AI infrastructure for hyperscalers will give us enhanced scale and deepen our customer relationships."
AMD will retain ZT Systems' AI system design operations and has named Sanmina its preferred NPI manufacturing partner to accelerate quality and time-to-deployment of AMD AI rack and cluster-scale systems for cloud customers.
"This agreement will help accelerate the U.S.-based manufacturing of AMD AI end-to-end training and inference solutions – which are optimized for our customer's unique environments, ready-to-deploy at scale and based on our open approach. Together, we will accelerate time-to-market and set the standard for quality and flexibility to benefit the entire AI ecosystem," says Forrest Norrod, Executive Vice President and General Manager, Data Center Solutions business unit at AMD