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]