Despite the fact that NEX is being spun off, Intel will remain a major investor, similar to their previous approach with Altera. If Intel can find a buyer, that is.
Intel will spin off the Networking and Edge Group.
A spokesperson for Intel confirmed (via CRN): “We plan to establish key elements of our Networking and Communications business as a stand-alone company… Like Altera, we will remain an anchor investor enabling us to benefit from future upside as we position the business for future growth.”
The company is still in the early stages of identifying investors.
NEX generated $5.8 billion of revenue for Intel in 2024. This is around 11% the company’s total revenue of $53.1 billion.
This is the latest drastic action undertaken under the direction and leadership of new Intel CEO Lip Bu Tan, who promised to make big changes upon his arrival in 2025.
This news, which comes just days after Intel announced that it would be further reducing its headcount, marks a significant milestone in Intel’s past and one that employees will pay close attention to.
