AMD gains $3 billion divesting from ZT Systems’ manufacturing business
AMD gains $3 billion by divesting from ZT Systems’ manufacturing business – retains key talent
AMD has confirmed that it has officially divested from ZT Systems’ manufacturing business, selling it to Sanmina for $3 billion. This recoups most of AMD’s acquisition costs from its ZT Systems (ZTS) purchase earlier this year, and secures AMD a “strategic partnership” with Sanmina. This partnership should allow AMD to deploy cloud infrastructure more quickly to customers in the future.
AMD acquired ZTS for its engineers, not its manufacturing business. AMD is not interested in competing with its customers. Because of this, AMD acquired ZTS with the intention of divesting from its manufacturing business. This gives AMD access to approximately 1,100 more systems engineers, which AMD plans to use to deliver stronger rack-scale AI solutions for its customers.
AMD (NASDAQ: AMD) today announced the completion of the agreement to divest the ZT Systems U.S.-headquartered data center infrastructure manufacturing business to Sanmina (NASDAQ: SANM).
As part of the transaction, AMD retains ZT Systems’ world-class design and customer enablement teams to accelerate the quality and time-to-deployment of AMD AI systems for cloud customers. Additionally, Sanmina becomes a preferred new product introduction (NPI) manufacturing partner for AMD cloud rack and cluster-scale AI solutions to further strengthen the AMD ecosystem of ODM and OEM partners.
“Rack-scale innovation marks the next chapter in the AMD data center strategy,” said Forrest Norrod, executive vice president and general manager, Data Center Solutions business unit at AMD. “By extending our leadership from silicon to software to full systems, we’re giving cloud and AI customers an open, scalable path to deploy AMD performance faster than ever. Our strategic partnership with Sanmina brings U.S.-based manufacturing strength together with AMD AI systems design and enablement expertise to deliver quality, speed and flexibility at scale.
– AMD
AMD currently creates strong CPU, GPU, and networking hardware. AMD’s recent acquisitions are all aimed at enabling the company to build stronger, more interconnected solutions for AI and other applications. This will help AMD build stronger supercomputers, AI clusters, and other large-scale computing solutions. This requires strong individual hardware components and excellent connectivity. After all, it’s not just the individual pieces that matter; it’s how everything comes together.
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