The semiconductor giant completed its $6.3 billion purchase of server maker ZT Systems back in April, but held discussions with several partners as it sought to carve off the manufacturing operations unit.
The deal, expected to close near the end of 2025, also includes up to $450 million in contingent payments based on future business performance.
Jure Sola, chairman and CEO of Sanmina, said: “ZT Systems’ liquid cooling capabilities, high-quality manufacturing capacity and significant cloud and AI infrastructure experience are the perfect complement to Sanmina’s global portfolio, mission-critical technologies and vertical integration capabilities.
“Together, we will be better able to deliver a competitive advantage to our customers with solutions for the entire product lifecycle.”
AMD will retain ZT Systems’ design and customer enablement teams as it looks to further boost its AI and data centre server offerings.
“The ZT Systems manufacturing business and its expert team remain a very important and strategic partner to AMD,” said Forrest Norrod, EVP and general manager of AMD’s data centre solutions business unit.
“We look forward to working with Sanmina to deliver world-class design, quality and manufacturing of AMD AI solutions supported by our open ecosystem approach.”
