AMD strikes a deal to sell ZT Systems' server-manufacturing business for $3B

Core Viewpoint - AMD is divesting ZT Systems' server-manufacturing business to Sanmina for $3 billion, which includes cash and stock components [1][2][3] Group 1: Deal Structure - The deal consists of $2.25 billion in cash, a $300 million premium (50% cash and 50% equity), and a $450 million contingent payment based on financial performance over the next three years [1] - The transaction is expected to close by the end of 2025, pending regulatory approval [2] Group 2: Strategic Implications - AMD will retain control of ZT Systems' rack-scale AI solutions design business after the divestiture [2] - Sanmina will become a preferred new product introduction manufacturing partner for AMD's cloud rack and cluster-scale AI solutions [4] Group 3: Background Context - AMD's acquisition of ZT Systems for $4.9 billion was announced in August 2024, with the intention to divest the server-manufacturing segment after the deal closed [3] - The acquisition officially closed in March 2025 [3] Group 4: Executive Commentary - AMD's executive vice president highlighted the expectation to enhance U.S.-based manufacturing capabilities and improve quality and time-to-market for cloud customers through the partnership with Sanmina [5]