Advanced Micro Devices (AMD), a leading semiconductor and computing technology company, has announced its intentions to divest the server-manufacturing business of ZT Systems, which it acquired in 2024. The move is part of AMD’s broader strategy to streamline operations and focus more intensively on its core competencies in chip design and high-performance computing solutions.
ZT Systems, prior to its acquisition by AMD, had established itself as a specialized provider of server manufacturing tailored for hyperscale data center clients. The acquisition in 2024 was seen as AMD’s effort to strengthen its supply chain and vertically integrate some structural aspects of its business, thereby enhancing responsiveness to the rapidly growing demand for custom server solutions.
However, AMD’s recent announcement indicates a shift in strategy. By selling off the manufacturing division of ZT Systems, AMD aims to concentrate resources on its chip development and architectural advancements, areas where it has sustained competitive advantages against rivals such as Intel and NVIDIA. The decision aligns with AMD’s long-term vision to remain agile and innovation-focused in an industry that is becoming increasingly complex and capital-intensive.
According to company sources, the divestment process will be structured to ensure minimal disruption to existing ZT Systems customers and employees. AMD has not disclosed potential buyers or detailed terms of the divestiture yet. Analysts suggest the move could attract established contract manufacturing firms looking to expand their footprint in the server hardware sector.
This strategic realignment signifies AMD’s continued emphasis on delivering high-end processor and GPU technologies for enterprise and data center applications, while offloading hardware manufacturing responsibilities to external partners with deeper operational expertise in this segment.
The divestiture is expected to conclude in late 2025, pending regulatory approvals and the identification of a suitable buyer.
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