Intel reportedly planning to spin off Network and Edge Group

Published 25/07/2025, 20:22
© Reuters

Investing.com -- Intel (NASDAQ:INTC) plans to spin off its Network and Edge Group (NEX) into a stand-alone company and is seeking outside investment for the business unit, according to a memo reportedly sent to customers and cited by the CRN on Friday.

The memo, authored by Sachin Katti, who has led NEX since early 2023, revealed that Intel "internally announced" on Thursday its plan to establish NEX as a stand-alone company. Katti also serves as Intel’s chief technology and AI officer, a role he was given by CEO Lip-Bu Tan in April to lead the chipmaker’s AI strategy.

The spin-off will create a "new, independent entity focused exclusively on delivering leading silicon solutions for critical communications, enterprise networking and ethernet connectivity infrastructure," according to Katti’s memo.

An Intel representative is said to have confirmed the plan in a statement, saying: "We plan to establish key elements of our Networking and Communications business as a stand-alone company and we have begun the process of identifying strategic investors."

The spokesperson added that Intel will "remain an anchor investor enabling us to benefit from future upside as we position the business for growth," comparing the arrangement to Intel’s approach with Altera.

No timeline was provided for when Intel might complete the NEX spin-off.

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