Intel is reportedly considering spinning off its Network and Edge Group (NEX), according to an internal memo obtained by CRN. Sent by group lead Sachin Katti—who was recently promoted to chief technology and artificial intelligence officer—the memo confirms that Intel is now seeking investment partners for the unit. NEX is known for manufacturing Ethernet chips and related communications hardware, though it no longer handles edge computing. That responsibility shifted to Intel´s Client Computing Group following a September 2024 restructure.
Crucially, Intel does not plan a full divestiture. Instead, the company intends to retain the role of anchor investor in the new entity. This strategy would enable Intel to continue influencing development and maintaining privileged access to future NEX products. Katti´s memo suggests that the move is expected to enhance the unit´s ability to expand into new market segments, providing greater focus, speed, and flexibility—all attributes Intel hopes will better serve clients´ evolving needs. However, it remains unclear why similar agility couldn’t be achieved within Intel’s corporate structure, especially when customer feedback hints competitors are already providing more tailored solutions.
The decision comes as NEX products face market headwinds. Intel has struggled with recurring issues in its 2.5 Gbps Ethernet portfolio, with bugs persisting across multiple hardware revisions and limited adoption of its more recent E610-series Ethernet products. These challenges have highlighted broader concerns regarding Intel´s ability to innovate and capture market share outside its core CPU operations. The potential spinoff of NEX adds to mounting questions over how many non-core businesses Intel can offload before it becomes predominantly a processor company.
