US-based tech giant Intel is considering divesting its networking and edge businesses, reported Reuters citing three sources with knowledge of the matter.

The move aligns with the strategy of recently appointed CEO Lip-Bu Tan, who is aiming to refocus the company on core strengths in PC and data centre chips.

The unit under review, previously referred to as NEX in Intel’s financial reports, could be offloaded as part of Tan’s broader efforts to streamline operations.

Tan was quoted by the news agency as saying to executives during an event in Taipei, Taiwan: “That’s something we’re going to expand and build on.”

According to sources, while Intel has considered how and when to exit the NEX group, the company has yet to initiate a formal sale process or reach out to potential bidders.

The company has reportedly held preliminary discussions with third parties who might have interest in acquiring the unit.

One of the sources said that Intel recently interviewed investment banks to identify an adviser for a possible transaction.

However, no bank has yet been appointed to lead the process.

Two of the sources suggested that the NEX business no longer fits within the strategic priorities laid out by Tan.

A portion of the NEX group involved in producing chips for telecom infrastructure is believed to be among the segments unlikely to support Intel’s revised strategic focus.

Another source noted that Intel’s networking operations may also be put on the block due to strong competition from companies like Broadcom.

Internally, Intel is said to be evaluating whether partnering with another firm or divesting a stake in the unit could make strategic sense.

These internal deliberations are still in early stages, and the company may ultimately pursue alternatives to an outright sale, the report added.

In the first quarter of 2025, Intel folded NEX’s financial results into its PC and data centre groups, ceasing to report the segment separately.

In April, Bloomberg reported that Intel plans to cut more than 20% of its workforce as part of Tan’s wider push to simplify the management structure and reinvigorate the company’s engineering-centric culture.

"Intel weighs networking and edge unit sale" was originally created and published by Verdict, a GlobalData owned brand.

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