AMD Offloads Server Manufacturing to Sanmina in $3B Deal to Double Down on AI

In a bold move to sharpen its focus on next-gen computing, AMD announced on May 19th, 2025, that it is selling the server-manufacturing arm of ZT Systems to Sanmina for $3 billion. The deal marks a strategic pivot for AMD as it aims to streamline operations and zero in on what it sees as the future of tech: artificial intelligence systems design. The division, known for producing high-performance servers used in data centers worldwide, now transitions to Sanmina—an electronics manufacturing heavyweight with a global footprint. For Sanmina, it’s a leap into deeper vertical integration in the booming enterprise server market. For AMD, it’s a clear signal that the company is all-in on pushing the boundaries of AI architecture. “We’re entering a new phase of growth—one where AI innovation is the central pillar,” said an AMD spokesperson. “This move allows us to focus on what we do best: designing powerful chips and systems to fuel the next generation of intelligent computing.” The sale comes at a time when AI infrastructure is in high demand, with enterprises, governments, and startups all racing to deploy smarter systems. By offloading the manufacturing side of the business, AMD frees up resources to invest in R&D and strengthen its position against rivals like Nvidia and Intel in the AI hardware space. Industry analysts view the transaction as a win-win. Sanmina gains a proven product line and customer base, while AMD gets to double down on its core competencies—just as AI adoption enters a global growth spurt. The message is clear: for AMD, the future isn’t in building the servers—it’s in building the brains behind them.