AMD is nearing a decision on the sale of its AI server assembly plants in the U.S., with Taiwan’s Compal Electronics, Wiwynn, and U.S.-based Jabil emerging as the final contenders in a deal valued at up to $4 billion.
The chipmaker has requested refreshed bids to be submitted in the coming days, with plans to finalize the transaction by the end of this quarter. Previous bidders Inventec and Pegatron have withdrawn from consideration, narrowing the field.
The manufacturing facilities, located in Texas and New Jersey, were acquired through AMD’s $4.9 billion purchase of ZT Systems last year. The divestiture aligns with AMD’s strategy to shed manufacturing operations that could position it as a competitor to its own customers, including Dell Technologies and Hewlett Packard Enterprise.
For the remaining bidders, the acquisition represents a significant opportunity to strengthen their AI server manufacturing capabilities in the U.S. The plants come with a skilled workforce of 1,500 employees essential for tech manufacturing.
Taiwanese electronics companies have been accelerating U.S. expansion plans to mitigate risks associated with potential tariffs on imports. Compal currently operates U.S. facilities primarily serving the automotive sector but is reportedly eyeing Texas for a new server production site, while Wiwynn announced in February its acquisition of a Texas factory.
The server manufacturing operations generated approximately $10 billion in revenue in the year preceding AMD’s acquisition of ZT Systems.
