Intel says plans to make networking unit stand alone company

Intel says plans to make networking unit stand alone company

Intel (NASDAQ:INTC) has announced plans to spin off its Network and Edge Group (NEX) into a stand-alone company, seeking outside investment for the business unit. The move, disclosed in a memo reportedly sent to customers and cited by the CRN, aims to create a new, independent entity focused on delivering leading silicon solutions for critical communications, enterprise networking, and Ethernet connectivity infrastructure [2].

The memo, authored by Sachin Katti, who has led NEX since early 2023 and also serves as Intel’s chief technology and AI officer, revealed that Intel internally announced its plan to establish NEX as a stand-alone company on Thursday. An Intel representative confirmed the plan, stating that Intel will remain an anchor investor, enabling the company to benefit from future upside as it positions the business for growth. The spokesperson compared the arrangement to Intel’s approach with Altera [2].

No timeline was provided for when Intel might complete the NEX spin-off. The move comes amid Intel's broader restructuring efforts, which include plans to cut its workforce to 75,000 by the end of 2025. Intel reported an $18.8 billion loss in 2024, its first annual loss since 1986, and continues to face competition from Nvidia, AMD, Samsung, and TSMC [1].

References:
[1] https://profit.pakistantoday.com.pk/2025/07/25/intel-wins-investor-lawsuit-over-alleged-stock-price-inflation/
[2] https://www.investing.com/news/stock-market-news/intel-reportedly-planning-to-spin-off-network-and-edge-group-4153751