AMD Dumps ZT Systems Factory--Goes All-In on AI Rack Wars with Sanmina

AMD AMD has completed the sale of ZT Systems' U.S.-based data center infrastructure manufacturing business to Sanmina SANM, marking a strategic pivot in how the chipmaker builds its AI and cloud systems. Rather than walking away entirely, AMD is holding onto ZT's world-class design and customer enablement teamsan important decision that could help it move faster in delivering large-scale AI systems to hyperscale and cloud providers.

Under the new partnership, Sanmina becomes AMD's preferred manufacturer for new product introductions across cloud rack and cluster-scale AI solutions. This collaboration could strengthen AMD's U.S. manufacturing base while broadening its relationships with global OEM and ODM partners. The transaction comes as major chipmakers look to secure domestic production capacity and reduce supply-chain frictionan increasingly important factor in the race to build next-generation AI infrastructure.

Forrest Norrod, head of AMD's Data Center Solutions unit, called the move the next chapter in AMD's data center playbook, extending its reach beyond silicon into full systems integration. The company is positioning itself to give cloud and AI customers a faster, more flexible path to deploy AMD-powered performance at scale. With more than five decades of experience in high-performance computing, AMD's focus now revolves around accelerating innovation in adaptive and AI computingpossibly signaling a more integrated future where the company's chips and systems evolve together.