[News] Intel NEX Spinoff Reportedly Draws Ericsson’s Interest, with $100M+ Investment on the Table

Intel is moving quickly as it trims non-core operations and shifts strategy. Just after reports of a planned spin-off of its Network and Edge Group (NEX), Bloomberg reveals that Ericsson is in talks to invest hundreds of millions in the unit.

According to Bloomberg, under the discussion, Ericsson could potentially become a minority stakeholder of Team Blue’s Network and Edge (NEX) business. However, the report suggests that Intel has also approached other potential investors, and while no deal is finalized, Ericsson’s involvement remains uncertain.

This comes just days after Intel confirmed to CRN that it will spin off its networking and communications arm into a standalone company. As per IT Home, similar to the Altera spin-off, Intel will remain the primary investor in NEX. In April, Intel announced it will sell a 51% stake in Altera to private equity firm Silver Lake for USD 4.46 billion. The transaction is expected to be completed in the second half of 2025.

Notably, although Intel plans to shift from its 18A node to the next-gen 14A process for new foundry clients, Ericsson already committed a strategic deal to use Intel’s 18A technology for its custom 5G chips back in 2023, according to the company’s press release.

According to IT Home, the Swedish telecom and networking giant and Intel have a deep-rooted partnership in networking, with Intel chips widely used in Ericsson’s 5G infrastructure. In addition to sourcing standard and custom Xeon D-series SoCs, Ericsson also collaborates with Intel on various ASIC development projects, the report adds.

As TechNews reported, Intel will continue producing 18A chips for existing customers like Amazon and Microsoft. At the same time, Intel’s internally designed chips will also keep using the 18A technology, with Panther Lake slated for mass production in 2H25.

Read more

• [News] Intel Spins off Network and Edge Unit to Sharpen Focus on Core Strategy After $2.9B Q2 Loss
• [News] Intel Earnings Call Bombshell: Could Exit Advanced Nodes if 14A Fails, Eyes TSMC Outsourcing Beyond 18A

(Photo credit: Intel)