Latest news with #ForrestNorrod
Yahoo
20-05-2025
- Business
- Yahoo
AMD to offload ZT Systems server-manufacturing for $3bn
Advanced Micro Devices (AMD) has agreed to divest ZT Systems' data centre infrastructure manufacturing business to Sanmina for up to $3bn The deal positions Sanmina as a preferred partner for the manufacturing of AMD's cloud rack and cluster-scale AI solutions. Under the deal terms, Sanmina will take over ZT Systems' operations for $2.25bn in cash, $300m premium split between cash and equity. The deal also includes a contingent consideration of $450m based on the financial performance of the business over the next three years. With the acquisition, Sanmina expects to increase scale and end-market exposure to cloud and ai infrastructure. It also anticipates bolstering its offering of end-to-end component technology, systems integration, and supply chain solutions. Sanmina chairman and CEO Jure Sola said: "ZT Systems' liquid cooling capabilities, high-quality manufacturing capacity and significant cloud and AI infrastructure experience are the perfect complement to Sanmina's global portfolio, mission-critical technologies and vertical integration capabilities. 'Together, we will be better able to deliver a competitive advantage to our customers with solutions for the entire product lifecycle. We look forward to our ongoing partnership with AMD as we work together to set the standard for quality and flexibility to benefit the entire AI ecosystem.' Subject to regulatory approval and standard closing conditions, the transaction is scheduled for completion by late 2025. AMD, however, will maintain ZT Systems' design and customer support teams. AMD Data Center Solutions business unit executive vice-president and general manager Forrest Norrod said: "We look forward to working with Sanmina as our preferred NPI manufacturing partner. 'This agreement will help accelerate the US-based manufacturing of AMD AI end-to-end training and inference solutions – which are optimised for our customer's unique environments, ready-to-deploy at scale and based on our open approach. 'Together, we will accelerate time-to-market and set the standard for quality and flexibility to benefit the entire AI ecosystem." Morgan Stanley is advising AMD financially, while Latham & Watkins is providing legal counsel. The sale follows AMD's deal to acquire ZT Systems for $4.9bn in 2024, with the intention to sell the server manufacturing business upon completion of the deal. "AMD to offload ZT Systems server-manufacturing for $3bn" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
AMD strikes a deal to sell ZT Systems' server-manufacturing business for $3B
Semiconductor giant AMD followed through with its plan to spin out ZT Systems' server-manufacturing business. AMD announced on Monday that it was selling ZT Systems' server-manufacturing business to electronic manufacturing services company Sanmina. The $3 billion deal is a mix of cash and stock: $2.25 billion in cash; a $300 million premium, including 50% cash and 50% equity; and a $450 million contingent payment based on financial performance over the next three years, according to Reuters. The deal is expected to close by the end of 2025, subject to regulatory approval. After this divestiture, AMD will maintain control of ZT Systems' rack-scale AI solutions design business. This announcement isn't a shock. When AMD announced its intent to acquire ZT Systems, an AI and cloud infrastructure company, for $4.9 billion in August 2024, the company said at the time that it planned to divest that part of ZT Systems' business after the deal formally closed. AMD's acquisition of ZT Systems officially closed in March 2025, according to Reuters. Alongside this announcement, AMD said that Sanmina will become a "preferred" new product introduction manufacturing partner for AMD cloud rack and cluster-scale AI solutions. 'By combining the deep experience of our AI systems design team with our new preferred NPI partnership with Sanmina, we expect to strengthen our U.S-based manufacturing capabilities for rack and cluster-scale AI systems and accelerate quality and time-to-market for our cloud customers,' said Forrest Norrod, executive vice president and general manager, data center solutions business unit at AMD, in the company's announcement. TechCrunch reached out to AMD for comment. This article originally appeared on TechCrunch at
Yahoo
19-05-2025
- Business
- Yahoo
Advanced Micro Devices to Sell ZT Systems' Data Center to Sanmina for $3 Billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) announced on Monday that it entered into a definitive agreement with Sanmina (NASDAQ:SANM) to sell its ZT Systems' U.S.-headquartered data center infrastructure manufacturing business for $3 billion, with a contingent upfront cash payment of $450 million. A close up of a complex looking PCB board with several intergrated semiconductor parts. With this deal, Sanmina (NASDAQ:SANM) becomes the preferred product introduction (NPI) manufacturing partner for AMD cloud rack and cluster-scale AI solutions. AMD will retain ZT Systems' world-class design and customer enablement teams to accelerate the quality and time-to-deployment of AMD AI systems for cloud customers. Forrest Norrod, the Executive Vice President and General Manager of the Data Center Solutions business unit at Advanced Micro Devices, Inc. (NASDAQ:AMD), commented on the recent agreement: 'By combining the deep experience of our AI systems design team with our new preferred NPI partnership with Sanmina, we expect to strengthen our U.S-based manufacturing capabilities for rack and cluster-scale AI systems and accelerate quality and time-to-market for our cloud customers'. The deal was initially announced in August 2024, and the transaction is expected to close by the end of 2025. While we acknowledge the potential of AMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
Time of India
19-05-2025
- Business
- Time of India
AMD to sell ZT Systems' server-manufacturing business to Sanmina in $3 billion deal
AMD will sell the server-manufacturing business of recently acquired ZT Systems to Sanmina in a $3 billion deal, making the U.S.-based contract manufacturer its partner for building AI hardware as the chip designer works to onshore supply chains. The deal, announced on Monday, highlights AMD's efforts to produce more of its chips on American soil amid global trade tensions and U.S. President Donald Trump 's efforts to expand domestic semiconductor manufacturing . AMD shares were down 2.2%, while Sanmina fell more than 5%. "We expect to strengthen our U.S.-based manufacturing capabilities for rack and cluster-scale AI systems and accelerate quality and time-to-market for our cloud customers," said Forrest Norrod , executive vice president of AMD's data center solutions business unit. The company had said last month its key central processor chips would soon be made at TSMC's new production site in Arizona - marking the first time its products will be manufactured in the U.S. AMD had announced a $4.9 billion buyout of ZT Systems in 2024 and unveiled plans to sell its server manufacturing business once the transaction closes. The deal was completed in March. Under Monday's agreement, AMD will retain ZT's AI systems design business - a key asset amid escalating computing requirements that require mapping out thousands of chips strung together in clusters. ZT's design unit could be an important portfolio item for AMD, which has been struggling to compete against Nvidia in the booming market for AI processors. Sanmina will pay $2.25 billion in cash for ZT Systems' manufacturing business, along with a $300 million premium consisting of 50% cash and 50% equity. The deal, expected to close near the end of this year, also includes a $450 million contingent consideration based on the business' financial performance over the next three years. AMD is entitled to receive up to $153 million, if the deal is terminated.
Yahoo
19-05-2025
- Business
- Yahoo
AMD to sell ZT Systems' server-manufacturing business to Sanmina in $3 billion deal
(Reuters) -AMD has agreed to sell the server-manufacturing business of recently acquired ZT Systems to Sanmina in a $3 billion deal, making the contract manufacturer its partner for building AI systems as the chipmaker works to onshore supply chains. AMD had announced a $4.9 billion buyout of ZT Systems last year and unveiled plans to break off its server manufacturing business and sell it once the transaction closes. The deal was completed in March. Under the agreement announced on Monday, AMD will retain ZT's AI systems design businesses and will work with Sanmina as a U.S.-based manufacturing partner for its AI data center business. Shares of AMD were down 2.7% in premarket trading. "We expect to strengthen our U.S.-based manufacturing capabilities for rack and cluster-scale AI systems and accelerate quality and time-to-market for our cloud customers," Forrest Norrod, executive vice president of AMD's data center solutions business unit, said in a statement. AMD has already taken steps to produce more of its chips on American soil amid global trade tensions and U.S. President Donald Trump's efforts to expand domestic semiconductor manufacturing. The company had said last month its key processor chips would soon be made at TSMC's new production site in Arizona — the first time its products will be manufactured in the United States. Sanmina will pay $2.25 billion in cash for ZT Systems' data center infrastructure manufacturing business, along with $300 million premium consisting of 50% cash and 50% equity. The deal, expected to close near the end of this year, also includes a $450 million contingent consideration based on financial performance of the business over the next three years. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
