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.

Semiconductor giant AMD followed through with its plan to spin out ZT Systems’ server-manufacturing business.

The deal positions Sanmina as a preferred partner for the manufacturing of AMD's cloud rack and cluster-scale AI solutions.