AMD $(AMD)$ has announced a definitive agreement to sell ZT Systems' data center infrastructure manufacturing business to Sanmina $(SANM)$ for $3 billion in cash and stock, which includes a contingent payment of up to $450 million. The transaction, expected to close near the end of 2025, will see Sanmina become a preferred manufacturing partner for AMD's cloud rack and AI solutions. While AMD will divest the manufacturing business, it will retain ZT Systems' design and customer enablement expertise to enhance the quality and speed of AMD AI systems deployment for cloud customers. This move aligns with AMD's previously announced intentions during the original acquisition of ZT Systems.
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