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 https://techcrunch.com/2025/05/19/amd-strikes-a-deal-to-sell-zt-systems-server-manufacturing-business-for-3b/
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
an hour ago
- Newsweek
US Home Prices Break Records Despite Cooling
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. U.S. home sale prices reached a record high during the four weeks ending June 15, hitting a peak of $396,500, according to the latest Redfin data, up 1 percent from a year earlier. It might be a discouraging figure for prospective homebuyers who have been struggling for years now with sky-high prices and historically elevated mortgage rates. But while home prices are still holding steady, experts do not expect them to continue rising for long, as new listings continue rising and inventory grows across the country. Why Are Home Prices Still Climbing? The main reason why home prices continue rising is that there is still a massive imbalance between supply and demand in the country, even if inventory has finally started rebounding over the past year. According to an estimate by the Washington-based think-tank Brookings, the U.S. housing market was short by nearly 5 million homes in 2024. In an aerial view, single-family homes in a neighborhood in Thousand Oaks, California, on April 18, 2025. In an aerial view, single-family homes in a neighborhood in Thousand Oaks, California, on April 18, while prices are still inching up, they are doing so at a much slower pace than they were over the previous five years, which saw double-digit year-over-year increases, or at the beginning of the year, when it was around 5 percent. In fact, we could say that they are now flatlining. Buyers are also negotiating and obtaining significant discounts over sellers' original asking price; according to Redfin data, the median sale price of a typical U.S. home is roughly $26,000 lower than the median asking price of $422,238. This is happening because buyers are gaining the upper hand in a market where sellers outnumber them by roughly 500,000, according to a recent Redfin report. While many sellers have decided to stop waiting for mortgage rates to come down to sell their properties, many buyers are being kept on the sidelines by high prices and monthly payments, and are leaving those listings sitting idle on the market for increasingly long periods of time. New listings of homes for sale were up 4.4 percent in the four weeks ending June 15 compared to a year earlier, while total listings were up 14.5 percent. Pending sales, during the same time frame, were down 1.5 percent year-over-year, and mortgage-purchase applications were down 3 percent week-over-week. The result is that sellers, especially those who approached the market hoping to get as much as they would have for their home during the pandemic homebuying frenzy, are having to meet buyers where they are at, lowering their asking price. "I'm explaining to sellers more and more that we need to be strategic in our pricing strategy because homes that are overpriced, even slightly, are likely to sit on the market and invite buyers to negotiate," said Kelly Connally, a Redfin Premier agent in Tulsa, Oklahoma, in a press release. "Pricing is most important, but with fewer buyers than usual out there, sellers should also make sure their home is in excellent condition and be ready to make repairs upon inspection," Connally added. "There are a few exceptions: homes in desirable locations that are in perfect condition are still hot and typically sell at or above asking price." When Will Prices Finally Come Down? Experts believe that, by the end of the year, home prices will finally start falling, even if modestly. Redfin expects home prices to decline by 1 percent year-over-year by the end of 2025, with parts of the country that have experienced the biggest surges in inventory reporting even steeper price drops. "The key for price changes will be to track growing inventory and time on market, especially relative to their pre-pandemic levels when the market was more balanced," senior economist Jake Krimmel previously told Newsweek. "Markets with high inventory and longer time on market are more likely to see price corrections. Overall, we expect a slow rebalancing rather than a sharp correction—unless economic conditions shift more dramatically."
CNBC
an hour ago
- CNBC
The Iran-Israel conflict isn't denting Chinese business optimism in the Middle East
BEIJING — The recent flare-up in Middle East tensions isn't denting Chinese business optimism about opportunities in the region. Chinese shipments to Dubai's logistics hub have risen by 20% this month from a year ago, as locals stock up on batteries and daily necessities, according to estimates from Bear Huo, China general manager at FundPark, a fintech startup that lends money to small Chinese businesses selling overseas via internet platforms. "Overall, Chinese merchants are relatively optimistic," he said Monday in Mandarin, according to a CNBC translation. That's partly due to the relatively recent rise of the Middle East as a fast-growing market, he added. Chinese companies have increasingly turned to the region in the last few years — whether to raise money from local investors or to tap a new market for electric cars — amid trade tensions with the United States. On the geopolitical front, Beijing helped Riyadh and Tehran restore diplomatic relations in 2023. Huo's view is that the Iran-Israel tensions will end relatively soon, given that even the U.S. strikes have targeted specific strategic sites, and as fighting isn't spread out along a border as in the drawn-out conflict between Russia and Ukraine. Nevertheless, risks remain elevated as the Dubai port is right across the Strait of Hormuz from Iran. Ships are moving more slowly and there are fewer flights, Huo said. He said he does not know where products from Chinese sellers go to after they arrive in Dubai, and added that the company doesn't directly do business with Iran because of sanctions. China's Ministry of Foreign Affairs said it "strongly condemns" the U.S. attacks on Iran over the weekend, while calling on all parties involved to "reach a ceasefire as soon as possible." China's trade with Iran has dropped sharply in the last two years, according to customs data accessed via Wind Information. The U.S.-sanctioned crude exporter has relied significantly on Beijing's purchases. "A more stable Middle East serves China's economic and strategic interests," said Yue Su, Beijing-based principal economist for China at the Economist Intelligence Unit. "Beijing will be interested to position itself as a constructive power capable of contributing to global stability," she said. She noted that Chinese businesses will likely interact cautiously with Iran, given concerns over possible secondary sanctions. State news broadcaster CCTV aired interviews Sunday of Chinese citizens grateful for Beijing's efforts to evacuate them from Iran. While there are strict warnings on U.S. citizens traveling to Iran, Chinese citizens have been able to visit Iran without a visa for three weeks, for tourism or business. Most Chinese nationals who were in Iran have been evacuated, the Chinese Embassy in Iran said Monday. On an even more optimistic note, if the latest escalation results in a relaxation of U.S. sanctions on Iran, tens of thousands of Chinese businesses would likely rush to the Middle Eastern country to build up its tourism, real estate and overall infrastructure, said Qin Gang, Beijing-based founder of a consultancy that translates as Ode & Song Cultural Industry. He said he visited five cities in Iran in 2013 at the invitation of Mahan Air, a private-sector Iranian airline.
Yahoo
5 hours ago
- Yahoo
Asia Morning Briefing: BTC Reclaims 100K as Markets Shrug off Iran Strike
Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas. As Asia begins the trading week, BTC is trading above $100,500 as the initial volatility from news over the weekend that the U.S. struck some of Iran's nuclear facilities begins to subside. While prices briefly dipped below six figures on Sunday in a risk-off reaction, markets have since stabilized. Equity futures are flat, and gold is up only marginally, suggesting that traders are not yet pricing in a broader escalation. The lack of follow-through in traditional markets may reflect expectations that Iran's response will be contained or delayed, rather than immediate and destabilizing. Crude oil is holding its gains near $76 per barrel after spiking nearly 4% Sunday evening on fears that Iran could block the Strait of Hormuz, a key chokepoint for global oil shipments. Still, commentary from U.S. officials and muted early-week trading suggest that investors remain in a wait-and-see mode. In crypto markets, altcoins that had mirrored BTC's weekend drop, like ETH, XRP, and SOL, are also clawing back losses. For now, the market appears to be treating the U.S.-Iran clash as a geopolitical flashpoint, not a structural break. Crypto exchange OKX is considering a public listing in the U.S., according to a report from The Information. Earlier this year, the exchange announced a U.S. expansion after settling with the Department of Justice over accusations that it operated in the country without a money transmitter license. Among other crypto-linked companies, Bullish, a competitor to OKX and the parent company of CoinDesk, is also said to be considering an IPO given investors' appetite for companies with exposure to digital assets. OKX told CoinDesk it had no comment on the matter. Polymarket bettors are cooling to the idea that the U.S will hit Iran a second time before the end of the month. The 'yes' side of a contract asking if the U.S. will conduct another military action on Iran by June 30 is now trading at 54%, from 74% in the hours after the initial strike on Iranian nuclear sites. There appears to be a growing market belief that deconfliction – on both sides – is on the agenda, as evidenced by another contract asking bettors about the likelihood of Iran closing the Strait of Hormuz, which is currently trading at 49% down from 52%. BTC: Bitcoin rebounded to $101,419 after a volatile 4.5% intraday swing, finding strong support at $99,000 amid geopolitical tensions and surging institutional buying interest, according to CoinDesk Research's technical analysis data. ETH: Ethereum fell 2.3% to $2,237 amid U.S.-Iran tensions, breaking a six-week consolidation pattern despite over $500 million in institutional accumulation. Gold: Bank of America analysts predict gold could hit $4,000 an ounce within a year, an 18% jump, driven less by geopolitical tensions and more by mounting U.S. fiscal debt and a global shift by central banks away from the dollar toward gold. Nikkei 225: Asia-Pacific markets fell Monday as the U.S. strikes on Iranian nuclear sites fueled oil price spikes and fears of broader Middle East escalation, with Japan's Nikkei 225 down 0.56%. Texas Governor Greg Abbott signs strategic Bitcoin reserve bill into law (The Block) Which Crypto IPOs Could Be Next Following Circle? (Decrypt) What Are Savvy Bitcoin and Ether Traders Preparing For as Summer Approaches? (CoinDesk)
