The web has been buzzing after Semiconductor bigwig AMD decided to go ahead with its promise to spin off ZT Systems' server-manufacturing division.

Just this Monday, AMD broke the news that it was parting ways with ZT Systems' server-manufacturing unit, handing it over to Sanmina, a renowned electronic manufacturing services provider. The transaction is valued at a cool $3 billion, combining cold, hard cash and stocks. The breakdown includes $2.25 billion in cash; a $300 million bonus, split evenly between cash and equity; and a $450 million conditional payment pegged to financial performance in the coming three-year period, as reported by Reuters.

We can expect the curtains to close on this deal by the end of 2025, as long as the regulatory bodies give it the green light. Once the keys change hands, AMD will still keep a firm hold on ZT Systems' rack-scale AI solutions design operations.

Truth be told, most of us saw this coming. Recall in August 2024 when AMD let the world know they were after ZT Systems, an AI and cloud infrastructure firm, worth a whopping $4.9 billion? AMD made it clear that they'd eventually let ZT Systems’ business division go once the deal was locked in. The AMD-ZT Systems marriage was formally sealed in March 2025, as per Reuters' reports.

Adding to this news, AMD announced that Sanmina is transitioning into a "preferred" partner for ushering new product manufacturing related to AMD cloud rack and large-scale AI solutions.

Sharing about the partnership, Forrest Norrod, the top executive in the data center solutions business unit at AMD, stated in the company announcement, "By marrying our AI systems design team's expertise with our new favorite NPI partner Sanmina, we are excited about enhancing our U.S-based manufacturing prowess for rack and large-scale AI systems and delivering top-quality, swift offerings to our cloud clientele.”