Advanced Micro Devices, Inc. (NASDAQ:AMD) announced on Monday that it entered into a definitive agreement with Sanmina (NASDAQ:SANM) to sell its ZT Systems’ U.S.-headquartered data center infrastructure manufacturing business for $3 billion, with a contingent upfront cash payment of $450 million.Advanced Micro Devices to sell ZT Systems' data center to Sanmina for $3 billion

A close up of a complex looking PCB board with several intergrated semiconductor parts.

With this deal, Sanmina (NASDAQ:SANM) becomes the preferred product introduction (NPI) manufacturing partner for AMD cloud rack and cluster-scale AI solutions. AMD will retain ZT Systems’ world-class design and customer enablement teams to accelerate the quality and time-to-deployment of AMD AI systems for cloud customers. Forrest Norrod, the Executive Vice President and General Manager of the Data Center Solutions business unit at Advanced Micro Devices, Inc. (NASDAQ:AMD), commented on the recent agreement:

“By combining the deep experience of our AI systems design team with our new preferred NPI partnership with Sanmina, we expect to strengthen our U.S-based manufacturing capabilities for rack and cluster-scale AI systems and accelerate quality and time-to-market for our cloud customers”.

The deal was initially announced in August 2024, and the transaction is expected to close by the end of 2025.

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