AMD Ready for US Chip Launch, Plans to Capitalize on ZT Server Business

The day before, Nvidia management made ambitious plans to produce AI infrastructure elements in the United States in the next four years for a total of $500 billion. AMD also decided to remind that it is ready to receive its chips from the TSMC plant in Arizona. At the same time, it is actively looking for buyers for ZT assets for the production of server systems in the United States.

Image Source: TSMC

First, as Reuters notes, AMD CEO Lisa Su confirmed during her visit to Taiwan that the company is ready to receive semiconductor components manufactured at TSMC’s Arizona facility. In addition, she promised that AMD will increase the production of AI server systems in the United States. This does not mean, however, that AMD will do this on its own, since it does not intend to compete with its partners.

In a similar vein, AMD is seeking to find buyers for the manufacturing assets of ZT Systems, which it acquired earlier, by the end of the current quarter, Bloomberg reports. The latter has server hardware manufacturing facilities in Texas and New Jersey. The $4.9 billion deal between the companies closed in late March, but AMD has committed to finding new owners for ZT Systems’ businesses.

According to unofficial data, Taiwanese Inventec and Pegatron have dropped out of the list of potential buyers, but Compal Electronics, Wiwynn and Jabil remain interested in ZT Systems’ production assets in the US. According to some sources, AMD will be able to get $3 to $4 billion for them. The market situation is currently favorable to the seller, since against the backdrop of the upcoming introduction of import duties in the US, many server equipment manufacturers are interested in expanding their American capacities. Foxconn, for example, has specialized enterprises in Mexico and the US, and Quanta Computer has already allocated $230 million to expand the production of server systems in this country. It is quite natural that competing companies are also interested in this opportunity – especially since ZT Systems had a team of about 1,500 qualified employees who could continue producing server systems in the US in a short time under new business owners. Before coming under AMD’s wing, this company had annual revenues of $10 billion.

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