Sanmina Acquires ZT Systems’ Server Manufacturing in $3 Billion Deal: What It Means for AI in the US

In a major move for the US technology sector, Sanmina has agreed to acquire ZT Systems’ server-manufacturing business from AMD in a deal worth $3 billion. This agreement signals a significant boost to the domestic production of AI and cloud infrastructure, strengthening the position of American companies in a rapidly evolving market.

Sanmina’s Strategic Expansion

Sanmina, a top-tier integrated manufacturing provider, will now play a central role in building next-generation rack and cluster-scale AI systems in the United States. The deal with AMD, announced in May 2025, makes Sanmina the preferred manufacturing partner for the chipmaker’s AI data center business. With this expansion, Sanmina is set to accelerate quality, time-to-market, and reliability for cloud customers across the industry.

The agreement aligns with industry trends of onshoring and strengthening local supply chains. As highlighted in Yahoo Finance’s coverage of the transaction, the move is also part of AMD’s strategy to focus on design and innovation, while relying on Sanmina for large-scale production and delivery.

AMD’s Plan: Innovation and Partnership

While AMD recently completed its $4.9 billion buyout of ZT Systems, the company decided to divest the data center manufacturing component. By choosing Sanmina as its manufacturing partner, AMD will retain ZT’s world-class AI systems design and customer enablement expertise. This collaborative approach allows AMD to concentrate on developing cutting-edge AI solutions, while Sanmina ensures those solutions reach the market quickly and efficiently.

For more details on the strategic aspects of this divestment and partnership, see The Star's GlobeNewswire article. The article explains that Sanmina will purchase the business in cash and stock, reinforcing its reputation for end-to-end manufacturing and support across the technology sector.

Implications for AI and Cloud Infrastructure

This deal brings several notable benefits for the US technology ecosystem:

• Strengthened Domestic Manufacturing: With Sanmina based in the US, the agreement addresses concerns about global trade tensions and provides greater security for American supply chains.
• Faster Time-to-Market: Sanmina’s expertise accelerates production timelines, which is crucial for companies needing to deploy advanced AI solutions quickly.
• Broader Ecosystem Collaboration: The transaction positions Sanmina as a vital link between chip development, system design, and large-scale deployment for cloud providers.

Industry leaders at both AMD and Sanmina have expressed optimism about driving quality and flexibility in AI manufacturing. As described in Reuters’ update on the agreement, the deal is expected to close by year-end, pending regulatory approval.

Conclusion: A New Era for Sanmina and US Technology

The Sanmina and ZT Systems manufacturing deal is a landmark moment for American innovation in AI and data centers. By combining strengths in design, manufacturing, and customer support, these companies aim to set new standards for quality and efficiency in the digital age. As this partnership develops, businesses and cloud providers can expect faster, more reliable access to the advanced infrastructure needed for AI transformation.

For ongoing updates and expert insights, explore the official announcements and coverage linked above.