Advanced Micro Devices (AMD) is in discussions with several Asia-based companies regarding the potential sale of data centre manufacturing plants, reported Bloomberg citing people familiar with the matter.

The assets are estimated to be worth between $3bn and $4bn, including debt.

Sources close to the situation told the publication that potential buyers include Taiwan-based companies such as Compal Electronics, Inventec, Pegatron, and Wistron.

The plants became part of AMD’s portfolio through its $4.9bn acquisition of ZT Systems, which was announced in 2024.

A sale could be announced by AMD as early as the second quarter 2025.

However, negotiations are still in progress and there is no guarantee that AMD will finalise a deal, the sources added.

Earlier, the company stated its intention to divest the manufacturing business to avoid direct competition with its customers, which include prominent companies such as Dell and Hewlett Packard Enterprise.

In November 2024, it was reported that AMD would reduce its global workforce by 4% to streamline its operations and focus on the competitive AI chip market.

This decision is expected to affect around one thousand employees and is part of AMD’s strategy to enhance its position against Nvidia, a dominant player in AI chip technology.  

AMD’s product line includes AI accelerators for data centres such as the MI300X, which are utilised by tech giants such as Meta and Microsoft.

In 2024, AMD and IBM teamed up to offer AMD Instinct MI300X accelerators as a service on IBM Cloud.  

With the new offering, the firms plan to boost performance and efficiency for generative AI models and high-performance computing applications for business customers.