Intel has announced that it will separate its networking and communications division, known as the Network and Edge Group (NEX), into a standalone company. The tech giant has already started looking for strategic investors to support the new business.
This move is part of Intel CEO Lip-Bu Tan’s plan to focus the company on its core products and improve its performance. Recently, Intel also sold part of its stake in Mobileye and made other changes, including cutting 15% of its workforce and reducing investments in its chip manufacturing business.
What Intel Said About the Spin-Off
An Intel spokesperson said:
“We’re turning key parts of our networking and communications business into a standalone company and looking for investors. Like we did with Altera, Intel will remain a major investor and benefit from future success.”
Internal Memo Details
Intel employees and customers were informed through a memo written by Sachin Katti, who has led NEX since 2023. He was recently also made Intel’s Chief Technology and AI Officer.
Katti explained that the new company will focus entirely on networking technologies, like enterprise networking, Ethernet connectivity, and communications infrastructure.
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He added:
“There won’t be any change in the service or support our customers get. But the new company will be able to move faster, focus better, and expand into new areas more easily.”
Intel says this change will allow the new company to innovate more quickly and invest in new products, while still being backed by Intel.
No Timeline Yet
Intel hasn’t given a specific date for when the spin-off will happen. Over the past year, it has also moved other business areas—like edge computing and photonics—to different parts of the company.
Just like with previous spin-offs, Intel plans to keep a share in the new NEX company even after bringing in other investors.
