Intel is reportedly considering the sale of its networking and edge (NEX) business as part of a broader strategic realignment under CEO Lip-Bu Tan, according to sources familiar with the matter. The move signals a continued shift in focus toward the company’s core strengths in PC and data center chips, areas where Intel has historically dominated.
Sources indicate that the NEX unit, which was once central to Intel’s growth ambitions in network infrastructure and edge computing, is no longer aligned with Tan’s streamlined vision for the company. Since taking over as CEO, Tan has emphasized efficiency, innovation in traditional chip markets, and realignment of resources toward areas with proven returns.
The NEX group, which was previously highlighted in Intel’s financial reporting, aimed to expand the company’s presence in cloud networking, telecommunications, and edge computing. However, changing market dynamics and internal strategic assessments have led Intel to reassess the unit’s long-term relevance.
“Tan is determined to double down on what Intel does best,” said one source, pointing to the company’s renewed focus on high-performance CPUs for personal computing and enterprise data centers. “The idea is to concentrate talent and capital on sectors that offer the highest value and most stable growth potential.”
If the networking and edge businesses are divested, it would mark the latest in a series of restructurings by Intel in an attempt to regain technological leadership and shareholder confidence. The company has faced growing competition from rivals like AMD and Nvidia, as well as challenges in meeting production and innovation timelines.
Analysts suggest that the sale could attract interest from private equity firms or tech companies looking to bolster their own networking capabilities. The potential divestiture could also free up billions of dollars in resources that Intel could reinvest in advanced semiconductor manufacturing and AI chip development.
While the company has not officially confirmed the sale, the internal discussions reflect a decisive turn under Tan’s leadership. Intel appears poised to trim operations to their most competitive core, preparing for the next chapter in its storied history as a leader in global semiconductor innovation.
