SAN JOSE, Calif., May 19, 2025 – Sanmina Corporation (NASDAQ: SANM), a global leader in integrated manufacturing solutions, announced it has signed a definitive agreement to acquire the data center infrastructure manufacturing business of ZT Systems from AMD (NASDAQ: AMD). ZT Systems is a major Cloud and AI infrastructure supplier to the world’s top hyperscalers. This acquisition strengthens Sanmina’s position as a vertically integrated global manufacturing provider and will enhance its ability to support large-scale AI system deployments in data centers.
ZT Systems’ manufacturing business, which generates approximately $5 to $6 billion in annual revenue, brings over three decades of experience in systems integration. The business includes advanced liquid cooling capabilities and manufacturing operations in New Jersey, Texas, and the Netherlands. This acquisition complements Sanmina’s existing global operations and allows it to offer full systems integration, ranging from components to complete racks, for the Cloud and AI ecosystem.
Sanmina CEO Jure Sola stated that this move positions the company as a leader in the Cloud and AI infrastructure market. He added that combining Sanmina’s global manufacturing and integration capabilities with ZT Systems’ established facilities and expertise will enable the company to deepen customer relationships, accelerate growth, and create long-term shareholder value.
As part of the deal, AMD will retain the AI systems design business of ZT Systems and will work closely with Sanmina as a U.S.-based new product introduction (NPI) manufacturing partner. This partnership is aimed at accelerating the production and deployment of AMD’s AI solutions, including rack and cluster-scale systems optimized for cloud environments. AMD’s Executive Vice President, Forrest Norrod, expressed confidence that working with Sanmina will help deliver AI systems faster and with higher quality, ultimately benefiting the broader AI ecosystem.
The acquisition is expected to significantly increase Sanmina’s scale in the fast-growing Cloud and AI markets and double its revenue within three years. It will also allow Sanmina to offer more comprehensive solutions to existing and new customers. With the addition of ZT Systems’ manufacturing capabilities and advanced technologies, Sanmina is reinforcing its role as a key partner for mission-critical digital infrastructure.
Financially, the acquisition is anticipated to be accretive to Sanmina’s non-GAAP earnings per share in the first year, with further gains expected as integration synergies are realized. The combination of resources and expertise is expected to improve operational efficiency and enhance Sanmina’s ability to deliver end-to-end manufacturing services across the AI and Cloud technology landscape.
