AMD has agreed to sell the server manufacturing business of ZT Systems to Sanmina Corporation for up to $3 billion, forming a strategic partnership aimed at accelerating the deployment of AI infrastructure at scale.

The deal, announced Monday, marks a significant step in AMD's efforts to streamline its data center operations following the $4.9 billion acquisition of ZT Systems earlier this year. While AMD will retain ZT Systems' AI rack-scale system design and customer enablement teams, Sanmina will take over the manufacturing arm, positioning itself as AMD's preferred U.S.-based new product introduction (NPI) manufacturing partner for cloud and AI systems.

The transaction includes $2.25 billion in cash for assets at target net asset value, a $300 million premium split evenly between cash and equity, and a $450 million contingent payment based on future performance—bringing the total potential value to $3 billion. The deal is expected to close by the end of 2025, pending regulatory approvals.

Sanmina, a leading U.S. electronics manufacturing services provider with 34,000 employees across 21 countries, will acquire ZT Systems' advanced manufacturing facilities in New Jersey, Texas, and the Netherlands. The acquisition strengthens Sanmina's position in the fast-growing cloud and AI infrastructure market, with ZT Systems' manufacturing business currently generating an annual revenue run-rate of $5–6 billion.

Sanmina Chairman and CEO Jure Sola called the acquisition a “highly strategic and accretive transaction,” adding that it enhances Sanmina's global footprint and allows the company to provide end-to-end systems integration—from components to fully assembled AI racks—for hyperscale and enterprise customers.

AMD Executive Vice President Forrest Norrod emphasized that the partnership with Sanmina will help accelerate time-to-market for AMD's AI training and inference platforms while maintaining quality and manufacturing flexibility for cloud partners.

Sanmina expects the deal to be accretive to non-GAAP earnings per share in the first year after closing. Bank of America is providing $2.5 billion in committed financing for the transaction.