- Intel is exploring the sale of its Network and Edge (NEX) unit, aligning with its strategy to concentrate on core competencies.
- This move follows the recent divestiture of a majority stake in its Altera unit to Silver Lake, reflecting Intel’s ongoing restructuring.
Chipmaker eyes sale of NEX division
Intel is reportedly considering the sale of its Network and Edge (NEX) division, a unit responsible for hardware in telecom equipment, networking infrastructure, and edge computing applications. This potential divestiture is part of CEO Lip-Bu Tan’s strategic plan to streamline operations and focus on Intel’s primary strengths in PC and data center chips.The discussions are in preliminary stages, with no formal sale process initiated, though some investment bankers have been consulted.
The NEX unit generated $5.8 billion in revenue in 2024 but was recently integrated into Intel’s data centers and PC groups, ceasing standalone financial reporting.
Also read: Intel reports $821M loss, despite modest Q1 performance
Also read: Intel offloads Altera to Silver Lake in $8.75B deal
Why it’s important
Intel’s potential sale of the NEX business marks a significant shift in its strategic priorities, as the company seeks to double down on its core strengths in PC and data centre chip markets. The move reflects an effort to streamline operations and concentrate resources on areas where it holds strong market positions and technological leadership.
This decision also underscores Intel’s response to intensifying competition in the semiconductor industry, particularly in emerging sectors such as AI and high-performance computing. Rivals like AMD and Nvidia have been gaining momentum, prompting Intel to recalibrate its focus and accelerate innovation in its most critical product lines.
Additionally, the move is consistent with Intel’s recent restructuring efforts, such as the sale of a majority stake in its programmable chip unit, Altera, to private equity firm Silver Lake. These changes demonstrate the company’s commitment to executing CEO Pat Gelsinger’s “IDM 2.0” strategy — a plan to revitalise Intel’s manufacturing and product leadership through targeted investments and divestitures. As Intel continues its transformation, the outcome of the NEX divestiture will be an important indicator of how effectively the company can reposition itself in a rapidly evolving tech landscape.
