The streamlining process continues at $INTC (-3,75 %)
continues at an unabated pace. Next, the Network and Edge division will be spun off into an independent company. And contract manufacturing could also come under the wheels.
Mass redundancies and the end of the planned chip factory in Magdeburg - Intel CEO Lip-Bu Tan is sweeping with an iron broom to make the company competitive again. However, these measures are unlikely to be the end of the austerity measures. It has now been announced that Intel intends to spin off its previously internal Network and Edge Group (NEX). The activities with network solutions and edge computing technologies are to be spun off to an independent company in the future, in which Intel intends to retain a significant stake. The company has now informed its customers of this in a letter after rumors to this effect emerged back in May 2025.
The Network and Edge Group produces network chips, Ethernet products, products for the communications infrastructure as well as WLAN chips and network cards with the corresponding chips. The products in this division are well-known and fairly widespread. Following the spin-off, the new independent company should be more agile and able to react more flexibly to the market. For Tan, the core business obviously only includes x86 and x64 processors and the AI business as a future market. Intel has already outsourced its embedded products to its subsidiary Altera and later transferred 51 percent of the shares to the investor Silver Lake. But this is not all: even the continued existence of contract manufacturing, the foundry, is not guaranteed - the new CEO is also questioning this division.
Source: www.itreseller.ch
