Sanmina Corp Acquires ZT Systems’ Manufacturing Business from AMD for $3 Billion

Sanmina Corporation, a leading contract manufacturing service provider in the information technology sector, has announced the acquisition of ZT Systems’ data center infrastructure manufacturing business from Advanced Micro Devices (AMD). The deal, valued at $3 billion, marks a significant expansion for Sanmina in the cloud and artificial intelligence (AI) sectors.

Key Details of the Acquisition

  • Transaction Structure: Sanmina will pay $3 billion for the acquisition, with $2.25 billion in cash and the remainder in other considerations.
  • Business Focus: The acquisition includes ZT Systems’ manufacturing operations, which specialize in data center infrastructure, aligning with Sanmina’s strategic goals to enhance its capabilities in cloud and AI infrastructure.
  • Strategic Implications: This move is expected to bolster Sanmina’s position in the rapidly growing cloud and AI markets, providing them with advanced manufacturing capabilities and access to new customer segments.

Market Reaction

  • Stock Performance: As of May 15, 2025, Sanmina’s stock closed at $84.56, with a 52-week high of $91.12 and a low of $61.52. The market capitalization stands at $4.5 billion.
  • Financial Metrics: The company’s price-to-earnings ratio is 19.46, reflecting investor expectations of future growth following the acquisition.

Background on Sanmina Corp

Sanmina Corporation, headquartered in San Jose, United States, operates in the electronic equipment, instruments, and components industry. The company is listed on the Nasdaq stock exchange and specializes in circuit fabrication, system assembly, integration, and high-end enclosures and cabling. Founded in 1993, Sanmina has established itself as a key player in the IT sector, offering expertise in new product introduction and complex interconnect product design and fabrication.

Conclusion

The acquisition of ZT Systems’ manufacturing business from AMD represents a strategic expansion for Sanmina, positioning the company to capitalize on the growing demand for cloud and AI infrastructure. This move is expected to enhance Sanmina’s manufacturing capabilities and strengthen its competitive edge in the information technology sector.