AMD’s artificial intelligence server assembly plants have drawn revised bids from Taiwan’s Compal Electronics, Wiwynn, and U.S.-based Jabil as they compete for manufacturing assets valued at up to $4 billion.
AMD inherited the Texas and New Jersey facilities through its $4.9 billion acquisition of ZT Systems, which closed in late March. The chipmaker plans to divest the manufacturing operations to avoid competing with major customers like Dell Technologies and Hewlett Packard Enterprise.
The strategic assets include a skilled workforce of 1,500 and are particularly attractive to Taiwanese electronics manufacturers seeking to expand U.S. production capabilities under President Trump’s heightened tariff environment. Inventec and Pegatron initially expressed interest but have since withdrawn from the bidding process.
AMD has requested refreshed bids to be submitted within days and aims to complete the transaction by the end of the second quarter, according to people familiar with the matter who asked not to be identified. The server manufacturing operations generated approximately $10 billion in revenue during the 12 months before AMD’s purchase.
The divestiture aligns with AMD’s broader AI strategy focused on combining “open-source software, industry standard networking technologies” with systems design expertise to deliver optimized AI solutions to customers. Representatives from the involved companies have declined to comment on the ongoing negotiations.
