Advanced Micro Devices (AMD) is in talks with Asian-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. Sources suggest that the sale agreement could be announced in the second quarter, highlighting that the facilities generated approximately $10 billion in revenue within 12 months prior to the famous chip manufacturer’s acquisition.

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

ESTIMATED VALUE OF $3-4 BILLION

Insiders familiar with the matter stated that these negotiations are ongoing. Companies like Compal Electronics, Inventec Corp, Pegatron Corp, and Wistron Corp based in Taiwan are among those interested in acquiring these facilities.

According to sources, the assets are estimated to carry a value of $3 to $4 billion, including debts. Sources who wished to remain anonymous to Bloomberg indicated that the sale agreement might be announced as early as the second quarter.

ACQUIRED FOR $4.9 BILLION

AMD acquired these production facilities from ZT Systems for $4.9 billion. Prior to the acquisition announced in August, ZT had long been a partner of Inventec, assembling its artificial intelligence servers.

Last year, AMD announced its intention to divest its production business to avoid competition with customers like Dell Technologies Inc. and Hewlett Packard Enterprise Co.

GENERATED $10 BILLION IN REVENUE BEFORE ACQUISITION

Bloomberg Intelligence analysts previously predicted that AMD’s production unit could be sold for between $1.5 billion and $3 billion.

It is reported that the server production operations brought in around $10 billion in revenue within 12 months before AMD’s acquisition. Taiwanese companies, especially Hon Hai Precision Industry, consider Mexico a critical center for assembling artificial intelligence servers and producing components.

However, due to threats of heavy tariffs on imports from Mexico by Trump, 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 U.S., while the board of directors of Taiwanese rival Quanta Computer Inc. approved a $230 million capital increase for its unit in the U.S.