Advanced Micro Devices (AMD) opened in the red this morning after announcing plans of selling ZT Systems to San Jose-headquartered Sanmina (SANM) for $3.0 billion in cash and stock. However, it will retain the data center infrastructure firm’s engineering team,

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.