AMD has acquired ZT Systems, a designer of cloud computing and AI data center equipment, for $4.9 billion (approximately NT$160 billion). The deal aims to enhance AMD’s capabilities in AI computing, positioning it as a competitor to NVIDIA’s dominance in the sector.
ZT Systems, headquartered in New Jersey, designs and manufactures servers and infrastructure for large data centers, serving clients like Microsoft and Meta. This acquisition will allow AMD to offer a more comprehensive suite of chips, software, and systems to these major customers.
Inventec, a Taiwanese electronics manufacturer and a 10% shareholder in ZT Systems, stands to gain from the acquisition. The two companies have collaborated since 2019, and Inventec’s involvement is expected to deepen as AMD integrates ZT Systems into its operations.
While AMD plans to complete the acquisition in the first half of next year, it will divest ZT Systems’ manufacturing arm, retaining its system design business. This acquisition, AMD’s largest since its purchase of Xilinx in 2022, underscores its strategic focus on expanding its footprint in the AI and cloud computing markets.
