[News] Intel Reportedly Mulls Selling Network, Edge Units to Double Down on PC, Data Center Chips

Intel CEO Lip-Bu Tan has been working to steer the company toward a turnaround. According to Reuters, sources say Intel has explored the possibility of divesting its network and edge businesses, once known as NEX, as these segments no longer align with the strategic direction Tan is pursuing for the company.

The report notes that Intel is refocusing its efforts on core areas where it has traditionally excelled—namely, PC and data center processors. Tan noted that the company plans to build on its strengths in these segments and said that Intel currently holds roughly 68% of the PC processor market and about 55% of the data center chip market, according to the report.

Intel has reviewed its business portfolio to assess whether partnering with another company or selling a stake would make strategic sense, sources cited in the report indicate. Though internal discussions are still preliminary, the report notes that the company could evaluate other possibilities aside from selling the NEX business.

As the report points out, the NEX unit, which produces chips for telecom equipment, has limited relevance to Intel’s future strategy. It also notes that Intel may sell its networking business, as major players like Broadcom dominate key segments of the market.

In the first quarter of the year, Intel integrated NEX’s financials into its data center and PC divisions and no longer reports it as a standalone segment. The NEX group generated USD 5.8 billion in revenue in 2024, as per the report.

Meanwhile, the report highlights that although Tan has told investors Intel will concentrate on core operations that have traditionally driven its highest revenues, the company has seen a sharp decline in its market share in both the data center and PC segments.

Intel CEO Lip-Bu Tan has emphasized that divesting non-core assets is key to the company’s turnaround. As a first step, Intel announced on April 14 that it will sell a 51% stake in its Altera subsidiary to private equity firm Silver Lake for USD 4.46 billion, according to Liberty Times citing Reuters. In its press release, Intel said the deal will allow it to sharpen focus on its core business.

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(Photo credit: Intel)