Sanmina Corp’s Strategic Acquisition of ZT Systems

In a significant move within the information technology sector, Sanmina Corporation, a leading contract manufacturing service provider, has announced its acquisition of ZT Systems’ data center infrastructure manufacturing business from Advanced Micro Devices (AMD). This acquisition, valued at $3 billion, marks a pivotal expansion for Sanmina as it seeks to bolster its presence in the cloud and artificial intelligence (AI) markets.

Details of the Acquisition

The deal, which was finalized on May 19, 2025, involves Sanmina acquiring ZT Systems’ manufacturing operations, including its server-manufacturing business. The transaction is structured with $2.25 billion in cash and additional considerations, underscoring the strategic importance of this acquisition for Sanmina. This move is expected to enhance Sanmina’s capabilities in data center infrastructure, aligning with the growing demand for cloud and AI solutions.

Strategic Implications

Sanmina’s acquisition of ZT Systems is poised to significantly enhance its service offerings in the rapidly evolving tech landscape. By integrating ZT Systems’ expertise in data center infrastructure, Sanmina aims to strengthen its position as a key player in the manufacturing of complex interconnect products and high-end enclosures and cabling. This acquisition aligns with Sanmina’s long-standing focus on circuit fabrication, system assembly, and integration, further solidifying its role in the electronic equipment, instruments, and components industry.

Market Reaction

The announcement of this acquisition has been met with positive reactions from the market. Sanmina’s stock, listed on the Nasdaq, closed at $84.56 on May 15, 2025, with a 52-week high of $91.12 and a low of $61.52. The company’s market capitalization stands at $4.5 billion, reflecting its robust position in the industry. Analysts anticipate that this strategic acquisition will drive future growth, particularly in the burgeoning cloud and AI sectors.

Conclusion

Sanmina’s acquisition of ZT Systems’ manufacturing business from AMD is a strategic move that underscores the company’s commitment to expanding its capabilities in the cloud and AI domains. As the demand for advanced data center infrastructure continues to grow, Sanmina is well-positioned to leverage this acquisition to enhance its service offerings and maintain its competitive edge in the information technology sector.