Rumors Suggest AMD Plans to Sell the U.S. AI Server Assembly Fab

[Nomad76]

AMD is said to be gearing up to sell its AI server assembly facility in the U.S., and it's drawing a lot of interest from Taiwanese OEM manufacturers and others. Bloomberg reports that Compal and Wiwynn are leading the charge in the bidding, with U.S. electronics company Jabil also in the mix. Interestingly, Inventec and Pegatron, who were once contenders, have pulled out. AMD is looking to speed up the sale process, asking for bids on a short timeline and aiming to finalize the deal by the end of the quarter, with a price range of $3-4 billion. This potential sale comes just months after AMD acquired the facility as part of its $4.9 billion purchase of ZT in March, which included the assembly plant and about 1,500 employees.

Industry experts suggest that AMD's decision to sell is a strategic move to avoid competing with its own clients in manufacturing. Meanwhile, the top bidders seem ready to expand their U.S. manufacturing capabilities. Compal is exploring North American expansion for server production, with Texas emerging as the prime location candidate due to its robust power infrastructure. Meanwhile, Wiwynn has already secured a foothold in the region, having announced the acquisition of a Texas factory in February specifically to establish server manufacturing operations.



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[kondamin]

Texas robust power infrastructure?
April fools is like 22 days ago

 

[TheinsanegamerN]

"AMD is looking to speed up the sale process, asking for bids on a short timeline and aiming to finalize the deal by the end of the quarter, with a price range of $3-4 billion. This potential sale comes just months after AMD acquired the facility as part of its $4.9 billion purchase of ZT in March, which included the assembly plant and about 1,500 employees."

So it appears AMD hasnt totally grown out of their habit of blowing truckloads on cash on purchases that go nowhere......

 

[R-T-B]

Texas robust power infrastructure?
April fools is like 22 days ago

Yeah Texas power failure is more of a meme than anywhere else at this point. Not saying they can't work around it but with the way their grid isolates itself, its an odd point to highlight as a locational positive.

"AMD is looking to speed up the sale process, asking for bids on a short timeline and aiming to finalize the deal by the end of the quarter, with a price range of $3-4 billion. This potential sale comes just months after AMD acquired the facility as part of its $4.9 billion purchase of ZT in March, which included the assembly plant and about 1,500 employees."

So it appears AMD hasnt totally grown out of their habit of blowing truckloads on cash on purchases that go nowhere......

Kind of not feeling that. I mean if you can't sell AI in this present AI circus that's more on you than what you bought. Still, end result is the same.

 

[qlum]

"AMD is looking to speed up the sale process, asking for bids on a short timeline and aiming to finalize the deal by the end of the quarter, with a price range of $3-4 billion. This potential sale comes just months after AMD acquired the facility as part of its $4.9 billion purchase of ZT in March, which included the assembly plant and about 1,500 employees."

So it appears AMD hasnt totally grown out of their habit of blowing truckloads on cash on purchases that go nowhere......

AMD was after it's engineers not manufacturing, selling that again, was the plan all along. Remains to be seen if it's worth it but still.

Article mentioning that: https://www.nextplatform.com/2024/08/19/why-amd-spent-4-9-billion-to-buy-zt-systems/

 

[R-T-B]

AMD was after it's engineers not manufacturing, selling that again, was the plan all along. Remains to be seen if it's worth it but still.

That adds up. Makes more sense than alternative explanations.

 

[blinnbanir]

Since when does Texas have a Robust Electrical Infrastructure? It is also the place with the most Natural Disasters. I hope I don't have to tell you what an Ice Storm can do to power lines. Hurricanes are also not something Texas does not get.