CCCS Consults on the Proposed Acquisition of ZT Group Int’l, Inc. by Advanced Micro Devices, Inc.

26 November 2024

1. The Competition and Consumer Commission of Singapore (“CCCS”) is inviting public feedback on the proposed acquisition of ZT Group Int’l, Inc. (“ZT”) by Advanced Micro Devices, Inc. (“AMD”) (collectively, the “Parties”) (the “Proposed Transaction”) ^[1].

2. CCCS accepted a joint application from the Parties on 22 November 2024 for a decision on whether the Proposed Transaction would be anti-competitive.

The Parties

AMD

3. AMD is a fabless global semiconductor company that develops computer processors and related technologies. As part of its data centre business segment, AMD supplies semiconductor devices globally for use in data centres, including the following: central processing units (“CPUs”); discrete graphics processing units (“GPUs”); field programmable gate arrays (“FPGAs”); and Smart Network Interface Cards (“SmartNICs”). AMD’s Singapore facility is a product development centre that conducts Research & Development activities for pre- and post-silicon development. AMD offers all products globally, including to customers in Singapore.

4. ZT is an original design manufacturer (“ODM”) of server and storage solutions for data centres. It has design, engineering, and manufacturing capabilities, and is principally located in the United States. ZT’s data centre business comprises of server design and engineering, server manufacturing and related services (including test, integration and support services). ZT builds customised server solutions for its customers, which are primarily large-scale data centres (known as hyperscalers). ZT’s services are offered globally, including to customers in Singapore.

Economic Activities of the Parties

5. The Parties submitted that they do not overlap in the supply of any goods or services in Singapore. However, there is a supplier-customer relationship between the Parties as AMD’s semiconductor products for use in data centres are incorporated into servers designed by ZT and its competitors.

Public Consultation

6. CCCS is inviting public feedback on the Proposed Transaction from 26 November 2024 to 5.00pm on 10 December 2024. CCCS is interested to hear views on the impact of the Proposed Transaction on competition. Public feedback can be provided via the official online form which can be accessed at https://go.gov.sg/cccsonlineform, or by emailing us at cccs_consultation@cccs.gov.sg. If the submission or correspondence contains confidential information, please also provide CCCS with a non-confidential version of the submission or correspondence.

7. More information on the public consultation can be accessed and downloaded from the CCCS website at cccs.gov.sg under the section “Public Consultation”.

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About the Competition & Consumer Commission of Singapore

The Competition and Consumer Commission of Singapore (“CCCS”) is a statutory board of the Ministry of Trade and Industry. CCCS administers and enforces the Competition Act 2004 which empowers CCCS to investigate and adjudicate anti-competitive activities, issue directions to stop or prevent anti-competitive activities and impose financial penalties. CCCS is also the administering agency of the Consumer Protection (Fair Trading) Act 2003 which protects consumers against unfair trade practices in Singapore. Our mission is to make markets work well to create opportunities and choices for businesses and consumers in Singapore.

For more information, please visit www.cccs.gov.sg.

^[1] The Proposed Transaction will be executed through AMD’s purchase of ZT’s shares.