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As the U.S. enhances the influence on the tech industry with related policies, chip giant AMD is rumored to sell its AI server assembly plant located in the United States, followed by proactive bidding from major OEM manufacturers in Taiwan. It’s reported that companies like Compal and Wiwynn have shown strong acquisition interest, while U.S. electronics firm Jabil is also among the bidders.
Per Bloomberg, AMD has asked potential buyers to submit their bids in the short term and hopes to complete the transaction by the end of this quarter. The expected transaction price is between USD 3-4 billion. Originally interested bidders Inventec and Pegatron have withdrawn, making Compal and Wiwynn the main contenders.
Compal’s current production capacity in the U.S. mainly serves the automotive electronics sector, but the company is actively expanding the AI server business. Compal is considering establishing a new server production facility in North America, and Texas is the preferred location due to its well-developed power infrastructure. As to Wiwynn, it had already announced in February the acquisition of a factory in Texas to set up a server production site, underscoring its commitment to the U.S. market.
In late March, AMD acquired ZT for USD 4.9 billion, including the server assembly plant and 1,500 personnel. However, with a strategic pivot, AMD decided to divest its manufacturing operations to avoid competition with its clients. The AI server assembly plant up for sale is one of the assets obtained through the ZT acquisition. The industry closely keeps an eye on the progress of this transaction, as it could exert a significant impact on the manufacturing landscape of server OEMs in the United States.
(Photo credit: AMD)
