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According to Bloomberg, citing people familiar with the matter, AMD is in talks with Asian companies to sell its data center manufacturing plants.

Companies including Compal Electronics Co LTD, Inventec Co LTD, Pegatron United Technologies Co LTD and Wistron Co LTD have expressed interest in acquiring the plants. The assets, including debt, could be worth $3 billion to $4 billion, they said.

The sources, who requested anonymity because of the confidential nature of the talks, said a deal could be announced as soon as the second quarter. However, they stressed that the current negotiations are still ongoing, and AMD has not yet determined whether a deal will be reached.

Acquired by AMD in its $4.9 billion acquisition of ZT Systems in August 2024, Secaucus, N.J., has more than 25 years of experience designing and deploying data center AI computing and storage infrastructure for hyperscale cloud service providers around the world. Focus on providing hyperscale server solutions for cloud computing and artificial intelligence.

ZT Systems' major customers include tech giants such as Microsoft, Meta, and Amazon, and its servers are used to support generative AI applications such as ChatGPT. Before the acquisition in 2024, the company had annual revenue of $10 billion, accounting for nearly half of AMD's revenue during the same period.

AMD's acquisition of ZT Systems is intended to enhance its capabilities in data center technology, specifically for the development of the AI market. ZT Systems' design, integration, manufacturing, and deployment capabilities make it one of the key providers of AI training and reasoning infrastructure.

Prior to its acquisition by AMD, ZT Systems was also a supplier of NVIDIA's AI accelerator GB200. AMD plans to integrate ZT Systems' system design department, including about 1,000 engineers, to accelerate testing and launch the latest AI GPU products to better meet the needs of cloud giants such as Microsoft.

At the same time, AMD decided to sell the server manufacturing part of ZT Systems so as not to compete with its own customers, including Dell, HP and others.

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