Advanced Micro Devices (AMD) is in talks with Asia-based companies to sell the data center production facilities it acquired last year for $4.9 billion for a price ranging from 3 to 4 billion dollars. Sources suggest that the sale agreement might be announced in the second quarter, highlighting that the facilities generated around $10 billion in revenue in the 12 months before the famous chip manufacturer’s acquisition.

AMD is in discussions with Asian-based companies regarding the sale of the data center production facilities it agreed to purchase last year.

ESTIMATED VALUE OF 3-4 BILLION DOLLARS

Insiders indicated that these negotiations are ongoing. Among the companies interested in purchasing these facilities are Taiwan-based Compal Electronics, Inventec Corp, Pegatron Corp, and Wistron Corp.

Sources estimate that the assets, including debts, could value between 3 billion and 4 billion dollars. According to Bloomberg sources, who preferred to remain anonymous, the sale agreement could be announced as early as the second quarter.

ACQUIRED FOR 4.9 BILLION DOLLARS
AMD acquired the production facilities by buying out ZT Systems for 4.9 billion dollars.

Before this acquisition announced in August, ZT was a partner of Inventec, assembling its AI servers for a long time.

Last year, AMD had announced that it would divest its production operations to avoid competing with customers like Dell Technologies Inc. and Hewlett Packard Enterprise Co.

GENERATED $10 BILLION IN REVENUE IN THE PAST 12 MONTHS BEFORE ACQUISITION
Bloomberg Intelligence analysts had previously predicted that AMD’s production unit could be sold for a price ranging from 1.5 billion to 3 billion dollars.

It is noted that the server production operations had generated approximately $10 billion in revenue in the 12 months before AMD’s acquisition.

Taiwan-based companies, especially Hon Hai Precision Industry, use Mexico as a critical center for the assembly and part production of AI servers.

However, due to Trump’s threats to impose heavy tariffs on imports from Mexico, some companies are increasing their investments in the United States. Since Trump’s election victory in November, Hon Hai has been acquiring land in the US, while the board of directors of its Taiwanese rival Quanta Computer Inc. approved a $230 million capital increase for its US unit.