May 22, 2025 /SemiMedia/ — Intel is considering divesting its networking and edge computing business as part of CEO Lip-Bu Tan’s ongoing efforts to streamline operations and concentrate on the company’s strongest semiconductor segments, according to three people familiar with the matter.

The unit, previously referred to as NEX in Intel’s earnings reports, focuses on telecom equipment chips and has become less central to Intel’s long-term strategy. The company has held early discussions with potential buyers but has not launched a formal sales process or appointed financial advisers, sources said.

One insider noted that Intel has recently talked to investment bankers about possibly overseeing a transaction, while another said no advisor has been retained so far. The possible sale reflects a broader internal review of Intel’s portfolio, aiming to determine if partnering with, or selling to, other firms would offer greater strategic value.

Intel CEO Lip-Bu Tan highlighted the company’s direction during a May 19 event in Taipei, noting that Intel commands 68% of the PC processor market and 55% of the data center processor space—areas he described as the foundation of Intel’s growth going forward.

In the first quarter of 2025, Intel stopped reporting NEX revenue separately, folding it into its Client Computing and Data Center divisions. Regulatory filings show that the NEX unit generated $5.8 billion in revenue in 2024.

While a sale is one option under consideration, Intel’s internal discussions remain in the early stages, and alternative paths have not been ruled out.