AMD (AMD.US) plans to sell its server factories for $4 billion, and several Asian companies are interested in bidding.

According to informed sources, AMD is currently in negotiations with multiple Asian companies regarding the sale of its data center manufacturing facilities, which were acquired as assets last year. The sources revealed that Inventec, Wistron, Pegatron, and Quanta have all expressed interest in acquiring the facilities. Including debt, the estimated value of the assets could be between $3 billion and $4 billion. The sources indicated that the deal could be announced as early as the second quarter. However, negotiations are still ongoing, and it is uncertain whether AMD will ultimately reach an agreement. In August, AMD announced a $4.9 billion acquisition of ZT Systems, thereby inheriting these manufacturing facilities. Prior to this, ZT was a long-term AI server assembly partner of Wistron. AMD stated last year that it would divest its manufacturing business to avoid competition with customers like Dell Technologies, Inc. Class C and HP Inc. Bloomberg industry research analysts Kunjan Sobhani and Oscar Hernandez Tejada previously estimated that the manufacturing division could be valued between $1.5 billion and $3 billion. In the 12 months prior to AMD's acquisition, the related server manufacturing business generated revenues of approximately $10 billion. For potential buyers, this presents an opportunity to acquire the core of the AI boom - server manufacturing facilities. Some of these facilities are located in New Jersey and Texas, providing the advantage of avoiding tariffs imposed by the Trump administration, which is promoting the reshoring of tech manufacturing to the U.S. Companies, including Foxconn, currently use Mexico as their main base for AI server assembly and component production. As Trump threatens to impose high tariffs on imports from Mexico to boost domestic manufacturing, some companies have started increasing their investments in the U.S. Since Trump's election victory in November, Foxconn has acquired land resources in the U.S., and its board has approved a $230 million investment in its American subsidiary.