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.

Semiconductor giant AMD followed through with its plan to spin out ZT Systems’ server-manufacturing business.

Manufacturing solutions company Sanmina announced Monday that it plans to acquire ZT Systems' data center infrastructure manufacturing business from Advanced Micro Devices for up to $3 billion. Sanmina will pay AMD $2.