October 27,2025
Sanmina Corporation, a leading integrated manufacturing solutions company, has announced the acquisition of the manufacturing operations of ZT Systems from Advanced Micro Devices, Inc. (AMD). The strategic move, finalized on October 28, 2025, is set to enhance Sanmina's capabilities in the high-performance computing and data center infrastructure markets.
The acquisition involves Sanmina taking over the specific manufacturing assets and operations previously managed by ZT Systems, a subsidiary of AMD. This transaction allows AMD to streamline its operational focus on its core competencies in semiconductor design and innovation, while entrusting the manufacturing scale and expertise to Sanmina.
Industry analysts view the deal as a logical step for both entities. For Sanmina, the integration of ZT Systems' manufacturing operations strengthens its portfolio in serving cloud and enterprise clients requiring sophisticated, custom server and data center solutions. The acquisition is expected to bring specialized engineering talent and advanced production capabilities under the Sanmina umbrella.
For AMD, the divestiture aligns with a strategic model adopted by many fabless semiconductor companies, which involves partnering with world-class manufacturing specialists to build their products. This allows AMD to concentrate its resources on architecture and chip development without the capital expenditure associated with managing downstream manufacturing facilities.
Financial terms of the agreement were not disclosed. The transition is anticipated to be seamless for existing supply chain partners, with Sanmina committing to uphold the high-quality production standards associated with the acquired operations. The deal underscores the ongoing evolution in the technology sector, where strategic partnerships and specialized divisions of labor are key to navigating complex global supply chains and meeting escalating market demands.
SOURCE themiddlemarket
