
AMD and Sanmina have finalized an agreement for Sanmina to acquire the U.S.-based data center infrastructure manufacturing business of ZT Systems for approximately $3 billion in a combined cash and stock deal. The acquisition positions Sanmina as AMD’s preferred manufacturing partner for new product introductions (NPI) in cloud rack and cluster-scale AI solutions.
It marks a strategic shift for AMD, which aims to enhance production speed and quality for its expanding AI systems portfolio, particularly in cloud deployments.
The transaction includes a contingent payment of up to $450 million and is subject to customary closing conditions and regulatory approvals. Completion of the acquisition is expected by the end of 2025. This move follows ZT Systems’ announcement in August 2024 that it was seeking a strategic buyer for its manufacturing business, which has played a key role in building scalable data center infrastructure solutions.
As part of the agreement, AMD will retain ZT Systems’ design and customer support teams, maintaining continuity in system development and customer engagement. The goal is to integrate these teams with Sanmina’s manufacturing capabilities to streamline production cycles and improve responsiveness to hyperscale and cloud service providers.
Forrest Norrod, executive vice president and general manager of AMD’s Data Center Solutions group, emphasized the value of combining AMD’s AI system design expertise with Sanmina’s manufacturing strength. He stated that the partnership is intended to boost domestic manufacturing capacity and reduce time-to-market for AMD’s AI and cloud customers, aligning with the company’s broader open ecosystem strategy.
Sanmina, headquartered in the United States, is a leading global provider of integrated manufacturing solutions serving industries such as communications, cloud infrastructure, and medical technology. The acquisition of ZT Systems’ manufacturing business expands its reach in the high-demand sectors of AI and cloud infrastructure.
Vertically Integrated Solutions
Jure Sola, chairman and CEO of Sanmina, highlighted the strategic fit of the deal, noting that ZT Systems brings liquid cooling technologies, high-volume manufacturing capabilities, and specialized experience in cloud and AI infrastructure. He added that the acquisition enhances Sanmina’s ability to offer vertically integrated solutions across the entire product lifecycle, reinforcing its competitive position in the rapidly evolving AI market.
AMD was advised on the transaction by Morgan Stanley & Co. LLC as financial advisor and Latham & Watkins LLP as legal counsel. The acquisition would underscore a broader industry trend of aligning chipmakers with manufacturing partners to meet increasing demand for AI-driven data center infrastructure.