Summary of Sanmina's Conference Call Company Overview - **Company**: Sanmina - **Industry**: Electronics Manufacturing Services (EMS) Key Points and Arguments Outsourcing Trends - Current outsourcing trends are favorable for Sanmina, with a shift towards increased outsourcing as companies recover from pandemic-related supply chain issues [5][6] - Growth in end markets is being observed, with Sanmina's results aligning with fiscal year guidance [6] Competitive Advantage in Communications - Sanmina has a long-standing presence in the telecom sector, which has been a stronghold for the company [7][8] - The company is focusing on complex, regulated markets and has capabilities to compete across various customer needs [9] Revenue Growth in Communication Networks - Sanmina's communication networks and cloud infrastructure segments grew approximately 20%, contributing to about 37% of total revenue [12] - Inventory turns have improved, indicating a recovery in the communication networks space [11] Joint Venture in India - Sanmina entered a joint venture with Reliance, where Reliance holds 50.1% but Sanmina retains control [13][14] - The joint venture is focused on various end markets, with significant growth in cloud infrastructure [15] Wireless and 5G Market - The wireless infrastructure market is showing signs of growth, contributing to overall revenue growth [17][18] Cloud Business Expansion - Cloud infrastructure represents about 37% of Sanmina's business, with expectations of 30% CAGR over the next five years [22] - Sanmina announced the acquisition of ZT Systems, which will enhance its capabilities in cloud infrastructure [20][21] Industrial and Other Markets - The industrial segment, which includes medical, defense, and automotive, is growing at low single digits due to inventory absorption challenges [30][31] - The defense business is stable, with long-term contracts providing consistent revenue [34] Automotive Focus - Sanmina is heavily focused on the EV market, expanding beyond infotainment into drivetrain components [38][39] Impact of Tariffs - No significant customer demand impact from tariffs has been observed, but Sanmina is proactively engaging with customers to discuss options [40][41] Capacity and Utilization - Sanmina has capacity to support increased demand, with a revenue capacity exceeding $10 billion [44][45] Financial Outlook - For fiscal year 2025, Sanmina expects high single-digit revenue growth and margin expansion [47][48] - The company maintains a strong balance sheet with no net debt, allowing for strategic acquisitions [49] Operating Leverage - Sanmina is focused on driving operating leverage through revenue growth and investments in vertical integration [52][53] Capital Allocation Strategy - The company prioritizes cash generation and ROI-based investments, shifting focus towards strategic acquisitions like ZT Systems [55][57] Market Perception - Sanmina aims to communicate its diversified business model beyond just telecom, highlighting its resilience and growth potential [58][59] Additional Important Content - Sanmina's gross margin profile has improved even during down years, indicating strong operational management [51] - The company is focused on executing its Q3 guidance and closing the ZT Systems transaction, which is expected to enhance its market position [54]

Company Overview - Sanmina's shares have increased by approximately 9.6% since the last earnings report, outperforming the S&P 500 [1] - The most recent earnings report is essential for understanding the key drivers behind this performance [1] Earnings Estimates - Fresh estimates for Sanmina have trended downward over the past month, with the consensus estimate decreasing by 15.33% [2] - This downward revision indicates a negative outlook for the stock [4] VGM Scores - Sanmina currently holds a Growth Score of B, a Momentum Score of C, and a Value Score of B, resulting in an aggregate VGM Score of A [3] Industry Comparison - Sanmina is part of the Zacks Electronics - Manufacturing Services industry, where competitor Celestica has seen a significant gain of 36.6% over the past month [5] - Celestica reported revenues of $2.65 billion for the last quarter, reflecting a year-over-year increase of 19.9% [5] - Celestica's expected earnings for the current quarter are $1.23 per share, indicating a year-over-year growth of 35.2% [6]

而对于 Sanmina 新美亚来说，这笔交易无疑是一个巨大的机遇。通过接手 ZT Systems 的制造业务，Sanmina 成为了 AMD 云机架和集群级 AI 解决方案的首 选 NPI（新产品导入）制造合作伙伴。这不仅为 Sanmina 带来了更多的业务机会，也进一步巩固了其在电子制造服务领域的领先地位。 总的来看，这次交易对于 AMD 和 Sanmina 双方都具有重要意义。AMD 通过出售制造业务，能够更加专注于自身的核心技术和产品研发；而 Sanmina 则借 此机会扩大了业务范围，提升了自身的竞争力和市场份额。 来源：http://www.cnu.com.cn/industry/202505/94540.html 近日，AMD 宣布了一项重大交易，将其旗下 ZT Systems 的数据中心基础设施制造业务出售给了电子制造服务大厂 Sanmina 新美亚。这项交易于美国东部时 间 5 月 19 日正式公布，交易金额最高可达 30 亿美元，其中包括了总计 4.5 亿美元的或有付款。 回顾过去，AMD 对 ZT Systems 的收购曾引起了广泛关注，当时的交易总价值高达 49 亿美元。AMD 在宣布收 ...

Core Viewpoint - AMD has reached a final agreement to sell ZT Systems' data center infrastructure manufacturing business to Sanmina for $3 billion, expected to be completed by the end of this year [1] Group 1: Transaction Details - The transaction value is set at $3 billion [1] - AMD previously agreed to acquire ZT Systems for $4.9 billion in cash and stock, with plans to retain the design and customer teams while selling the manufacturing division [1] Group 2: Timeline and Expectations - The deal is anticipated to close by the end of this year [1]

Summary of Sanmina Conference Call on Acquisition of ZTE Systems Company and Industry - **Company**: Sanmina (SANM) - **Acquisition Target**: ZTE Systems' data center infrastructure manufacturing business - **Industry**: Cloud and AI infrastructure manufacturing Core Points and Arguments 1. **Acquisition Details**: Sanmina announced the acquisition of ZTE Systems for a total purchase price of up to $3 billion, which includes $2.55 billion in cash and equity plus $415 million in contingent consideration [10][22] 2. **Strategic Partnership with AMD**: The acquisition establishes a strategic commercial partnership with AMD, aimed at accelerating the deployment of AMD's ROC and cluster scale AI solutions [9][19] 3. **Market Growth Potential**: The cloud and AI market is projected to grow from $300 billion to nearly $1 trillion in the next few years, presenting significant opportunities for Sanmina [16] 4. **Revenue Expectations**: The acquisition is expected to add approximately $5 billion to $6 billion to Sanmina's annual net revenue run rate and potentially double Sanmina's net revenue within three years [23][36] 5. **Non-GAAP EPS Accretion**: The transaction is expected to be accretive to non-GAAP EPS in the first year post-acquisition, with further improvements anticipated as synergies are realized [11][24] 6. **Operational Efficiencies**: The acquisition is expected to drive operational efficiencies and vertical integration opportunities, enhancing Sanmina's ability to deliver value to shareholders [24][29] 7. **Facilities and Capabilities**: ZTE Systems has multiple manufacturing facilities, including a 1.2 million square feet site in New Jersey and a 500,000 square feet facility in Texas, which are equipped with advanced liquid cooling capabilities [12][13] 8. **Management Expertise**: The acquisition brings in a strong management team and deep industry expertise, which is critical for the next generation of AI platforms [12][15] Other Important Content 1. **Financial Structure**: The acquisition includes a lockup period for equity sales, with a structured release over three years [21] 2. **Integration Plan**: Sanmina plans to implement a deliberate integration plan to ensure a seamless transition between the two organizations [22] 3. **Balance Sheet Strength**: Sanmina maintains a strong balance sheet with no net debt and a gross leverage ratio of approximately 0.5 times prior to the transaction [25] 4. **Customer Relationships**: The partnership with AMD is expected to enhance relationships with hyperscalers and OEM customers, broadening Sanmina's market reach [14][28] 5. **Future Growth Strategy**: Sanmina aims to leverage ZTE's capabilities to improve service offerings to existing customers and attract new ones, positioning itself as a key player in the EMS industry [49][50] This summary encapsulates the key points discussed during the Sanmina conference call regarding the acquisition of ZTE Systems, highlighting the strategic importance of the deal and its expected impact on the company's growth trajectory.

Core Insights - AMD announced the sale of its ZT Systems data center infrastructure manufacturing business to Sanmina for $3 billion in cash and stock, aiming to enhance operational efficiency and focus on its high-performance AI developer platform [1][2] - The deal includes up to $450 million in contingent consideration and is expected to be completed by the end of 2025 [1] - By outsourcing the low-margin, capital-intensive manufacturing operations to Sanmina, AMD can reduce fixed asset depreciation and allocate more capital to its higher-margin core business platforms, including the MI300 series AI GPUs and EPYC CPUs [1] Strategic Focus - The transaction is part of AMD's strategy to create a "light asset + soft-hard integration" model, enhancing the efficiency of its proprietary AI developer platform [2] - AMD aims to improve the experience and deployment speed of its AI developer platform, which includes the EPYC CPUs, MI300 series, and ROCm software stack [2] Partnership and Manufacturing - Sanmina will become AMD's preferred new product introduction (NPI) manufacturing partner for cloud rack-level and cluster-level AI solutions, leveraging its established hardware manufacturing network to shorten delivery times and navigate supply chain challenges [1] - The collaboration aligns with recent trade agreements and manufacturing transfer requirements under the Trump administration [1]

Sanmina To Acquire ZT Systems Manufacturing From AMD May 19, 2025 Today's Presenters Jon Faust EVP & CFO 2 Jure Sola Chairman & CEO Transaction Overview Transaction Delivers Compelling Value for Sanmina Shareholders 4 Sanmina to acquire ZT Systems Manufacturing, a leading provider of Cloud and AI infrastructure to the world's largest hyperscalers, from AMD Positions Sanmina to capitalize on long-term growth trends in Cloud and AI infrastructure spend Establishes a strategic commercial partnership for NPI wi ...

Core Viewpoint - AMD has entered into a definitive agreement to sell ZT Systems' U.S.-headquartered data center infrastructure manufacturing business to Sanmina for $3 billion, which includes a contingent payment of up to $450 million, while retaining ZT Systems' design and customer enablement teams to enhance AMD's AI systems for cloud customers [1][2][8] Group 1: Transaction Details - Sanmina will acquire the manufacturing business from AMD for $3 billion in cash and stock, including a contingent payment of up to $450 million, with the transaction expected to close near the end of 2025, pending regulatory approvals [2][8] - The divestiture aligns with AMD's intentions announced during the original acquisition of ZT Systems [8] Group 2: Strategic Partnership - Sanmina will become a preferred new product introduction (NPI) manufacturing partner for AMD's cloud rack and cluster-scale AI solutions, enhancing AMD's U.S.-based manufacturing capabilities [1][3] - The collaboration aims to strengthen the quality and time-to-market for AMD's AI systems, leveraging ZT Systems' expertise [3][4] Group 3: Company Profiles - Sanmina is recognized as a leading integrated manufacturing solutions provider, serving various industries with end-to-end design, manufacturing, logistics, and repair solutions [3] - ZT Systems' capabilities in liquid cooling, high-quality manufacturing, and cloud and AI infrastructure experience complement Sanmina's technologies, enhancing their competitive advantage [4]

Core Viewpoint - Sanmina Corporation has announced a definitive agreement to acquire the data center infrastructure manufacturing business of ZT Systems from AMD for a total consideration of up to $3 billion, which includes $2.55 billion in cash and equity plus $450 million in contingent consideration, enhancing its position in the Cloud and AI infrastructure market [1][7]. Transaction Details - The acquisition price consists of $2.25 billion in cash for assets, a $300 million premium split between cash and equity, and a $450 million contingent consideration based on future financial performance [7][8]. - Sanmina has secured committed financing of $2.5 billion from Bank of America to facilitate the transaction [9]. Strategic Rationale - The acquisition is expected to double Sanmina's revenue scale within three years, significantly enhancing its position in the fast-growing Cloud and AI end-market [11]. - Sanmina aims to deepen relationships with existing customers and attract new ones through ZT Systems' established connections with hyperscalers [11]. - The integration of ZT Systems' advanced manufacturing capabilities, including liquid cooling technologies, will complement Sanmina's existing operations and expand its footprint in Europe [11]. Expected Benefits - The transaction is anticipated to be accretive to Sanmina's non-GAAP EPS in the first year post-close, with further accretion expected as synergies are realized [11]. - The combination is projected to generate operational efficiencies and enhance Sanmina's capabilities as a leading end-to-end manufacturing partner for mission-critical technologies [11]. Partnership with AMD - AMD will retain ZT Systems' AI systems design businesses and collaborate with Sanmina as its preferred new product introduction (NPI) manufacturing partner, focusing on accelerating the deployment of AMD AI solutions [4][5].

Core Insights - Sanmina Corp. is in advanced talks to acquire AMD's server assembly plant, indicating a strategic move in the semiconductor industry [1] Group 1 - Sanmina Corp. is negotiating the acquisition of a server assembly facility from AMD [1] - The discussions regarding the acquisition are at an advanced stage, suggesting a potential deal may be imminent [1]