Intel is spinning off its Network and Edge Group into a stand-alone business

Intel is currently undergoing a significant transformation as it seeks to improve its financial performance under the guidance of CEO Lip-Bu Tan. With a $2.9 billion quarterly loss and 15,000 jobs set to be cut so the company can focus on core products and AI, we now have confirmation that Intel is planning to spin off its Network and Edge Group (NEX) into a standalone business.

2

This new information arrives via CRN, which obtained a memo addressed to its partners stating that it's looking for outside investment for its networking group. "We plan to establish key elements of our Networking and Communications business as a stand-alone company, and we have begun the process of identifying strategic investors," Intel said in a follow-up statement confirming the plan.

In addition to the news that Intel's next-gen 14A process node is currently on the chopping block if it can't find major customers, this is the latest move to streamline Intel, signed off by CEO Lip-Bu Tan.

What does Intel's NEX group develop? Well, that would be Intel's networking and communications chips that have been around for decades and are found in multiple devices. At TweakTown, we've all installed our fair share of Intel WiFi or Ethernet drivers over the years, and in 2024, the NEX group generated $5.8 billion in revenue.

The move to sell the long-running and lucrative NEX group as a stand-alone business is a clear indication that the company isn't willing to focus on or risk conducting business in areas unrelated to its core processor technology and AI.