Intel Spins Off Network and Edge Division
▼ Summary
– Intel plans to spin off its Network and Edge group, which produces telecom chips, as reported by CRN.
– Intel will be an anchor investor in the new stand-alone business and seek outside capital.
– The Network and Edge group generated $5.8 billion in revenue in 2024 and was rumored to be up for sale in May.
– This move mirrors Intel’s recent spin-off of RealSense, its stereoscopic imaging business, earlier this month.
– TechCrunch contacted Intel for details on the spinout’s timeline and plans but has not yet received additional information.
Intel is taking strategic steps to reshape its business by spinning off its Network and Edge division, a move that signals a continued focus on streamlining operations. The division, which specializes in producing chips for telecommunications, will operate as an independent entity with Intel serving as an anchor investor while also seeking external funding.
Reports initially surfaced in May suggesting Intel was exploring a sale for this segment, which generated $5.8 billion in revenue in 2024. The decision mirrors the company’s recent spin-off of RealSense, its stereoscopic imaging technology unit, which secured $50 million in venture capital under former CEO Pat Gelsinger’s leadership.
While details about the timeline and structure of the Network and Edge spin-off remain unclear, the move underscores Intel’s commitment to refining its portfolio. By carving out non-core businesses, the company aims to sharpen its focus on high-growth areas while maintaining financial flexibility. Industry watchers will be closely monitoring how this transition unfolds and what it means for Intel’s long-term strategy.
(Source: TechCrunch)
