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.

The deal positions Sanmina as a preferred partner for the manufacturing of AMD's cloud rack and cluster-scale AI solutions.

AMD (AMD) -2.3% premarket, to sell ZT Systems’ U.S.-headquartered data center infrastructure manufacturing business to Sanmina (SANM) for $3 billion in cash and stock.