AMD (AMD.US) is reportedly planning to sell its server factory for $4bn, with several Asian companies expressing interest in bidding for the acquisition.

According to sources, AMD (AMD.US) is in negotiations to sell its data center manufacturing plants to several Asian companies, which were acquired as part of the company's acquisition last year. Sources say that Pegatron, Gourgen, and Wingtech have expressed interest in acquiring the plants. The estimated value of the assets, including debt, could be between $3 billion and $4 billion. Sources indicate that the deal could be announced as early as the second quarter. However, negotiations are ongoing, and it is uncertain whether AMD will ultimately reach an agreement. AMD announced in August that it would acquire ZT Systems for $4.9 billion, inheriting the plants. Prior to the acquisition, ZT was a long-time partner of Gourgen in the assembly of AI servers. AMD said last year that it would exit the manufacturing business to avoid competing with customers such as Dell Technologies and Hewlett Packard Enterprise. Bloomberg Intelligence analyst Kunjan Sobhani and Oscar Hernandez Tejada previously estimated that the manufacturing division could be valued between $1.5 billion and $3 billion. The related server manufacturing business generated revenue of approximately $10 billion in the 12 months prior to AMD's acquisition. For potential buyers, this is an opportunity to gain access to the core of the AI boom - server manufacturing facilities. Some of the plants are located in New Jersey and Texas, which offer advantages in avoiding tariffs imposed by the Trump administration, which is pushing for the repatriation of technology manufacturing to the United States. Companies, including Foxconn, currently base their AI server assembly and component production in Mexico. As Trump threatened to impose high tariffs on Mexican imports to revive domestic manufacturing, some companies have started to increase their investments in the United States. Since Trump's victory in November, Foxconn has acquired land resources in the United States, and its rival Quanta has approved an investment of $230 million in its US subsidiary. #End of Polished Translation