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

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.

Advanced Micro Devices (NASDAQ:AMD) is divesting ZT Systems, a data center manufacturing infrastructure company, for $3B, yet the semiconductor firm retained ZT's engineering team to help it better compete with Nvidia (NASDAQ:NVDA),