Taiwanese companies, including Compal Electronics and Wiwynn Corp., and US-based Jabil Inc., are preparing revised bids for Advanced Micro Devices Inc. (AMD)’s AI server assembly plants in Texas and New Jersey.

The sale, valued between US$3 billion and US$4 billion, follows AMD’s acquisition of the plants through its US$4.9 billion purchase of ZT Systems in March.

AMD aims to finalize the sale by the end of Q2 2025, as part of its strategy to divest manufacturing operations and avoid competition with customers like Dell and HP.

The plants, which employ about 1,500 skilled workers, were previously estimated by Bloomberg Intelligence to be worth between US$1.5 billion and US$3 billion.

This sale comes amid Taiwanese electronics firms expanding in the US due to tariff concerns, with the plants seen as key assets amid rising demand for AI server production.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Taiwanese manufacturers scramble for US foothold as tariffs reshape supply chains

The interest from Taiwan-based ODMs (Original Design Manufacturers) in AMD’s server assets represents a broader strategic shift rather than just an isolated acquisition opportunity.

These companies are rushing to secure US manufacturing capabilities as protection against tariffs, with Customs and Border Protection recently implementing a minimum 145% tariff on many Chinese goods that could significantly impact electronics supply chains 1.

The elimination of the de minimis exemption for low-value goods entering the US further complicates logistics for companies relying on Asian manufacturing 2.

This acquisition provides an immediate US manufacturing presence with 1,500 skilled workers—far more efficient than building facilities from scratch. It aligns with moves by companies like Hon Hai (Foxconn), which has recently secured land in the US, and Quanta Computer, which approved a $230 million capital increase for its US operations.

The strategic value of these plants extends beyond their physical assets; they represent ready-made compliance with potential “Made in America” requirements that could become more stringent under trade policies.

2️⃣ AI infrastructure boom drives server manufacturing premiums

The $3-4 billion valuation for AMD’s server assets reflects the extraordinary demand for AI computing infrastructure that’s fundamentally changing the economics of hardware manufacturing.

Nvidia’s announcement that it plans to produce up to half a trillion dollars worth of AI infrastructure in the US over four years signals unprecedented demand for specialized server manufacturing capacity 3.

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