[News] Intel to Retain Networking and Edge Division After Spinoff Review as Financial Outlook Improves

Intel’s effort to shed non-core operations appears to be shifting, as the company now plans to retain its networking and edge (NEX) business. According to Reuters, Intel concluded after reviewing a potential sale that keeping NEX would be more advantageous. Bloomberg notes that the company believes retaining the unit will enable tighter integration across silicon, software, and systems, strengthening its position in AI, data center, and edge markets.

Reuters notes that Intel had previously considered selling various assets as it looked to improve its financial footing, but its cash position has strengthened significantly. According to the report, Intel has secured an $8.9 billion investment from the U.S. government for a 10% stake, along with $2 billion from SoftBank Group and $5 billion from NVIDIA.

The company is also gaining traction with potential customers. According to Tom’s Hardware and Commercial Times, Apple is eyeing Intel’s 18A node for M-series chips as soon as 2027, while MediaTek is exploring EMIB advanced packaging to secure additional capacity.

As part of the decision to keep its NEX business, Intel has ended discussions with Ericsson AB, which had been exploring a potential stake in the unit, as highlighted by Bloomberg. Earlier this year, Intel had indicated that it planned to separate the division and was seeking strategic investors.

Ericsson had explored an investment earlier this year to help stabilize Intel’s business. Bloomberg notes that the viability of Intel’s NEX division was particularly important for the Swedish telecom equipment maker, whose mobile network hardware relies heavily on Intel-designed chips.

The relationship between Intel and Ericsson had already deepened early last year when Ericsson announced that its future infrastructure would be built on Intel’s next-generation Xeon processors to achieve greater speed and energy efficiency, according to Bloomberg.

Read more

• [News] Intel Gains Momentum: 18A Eyes Apple, EMIB Reportedly Tapped for Google-MediaTek TPUs
• [News] Intel Spins off Network and Edge Unit to Sharpen Focus on Core Strategy After $2.9B Q2 Loss

(Photo credit: Intel)