Intel Considering the Sale of Its Network and Edge Unit

As part of efforts to cut costs and refocus the company on its core business, Intel is considering the sale of its network and edge unit. The chip giant has yet to launch a formal process to divest the division, which it calls NEX, but has engaged with investment banks over the past few weeks to find an advisor on a potential sale.

Intel is considering how and when to exit the business and has engaged with third parties that could be interested in a deal. The NEX division makes chips for telecom equipment, which is no longer one of the company’s core areas under CEO Lip-Bu Tan.

Discussions are in the early stages, and the company could decide to go in a different direction rather than selling NEX. In April, Intel agreed to sell off a 51% stake in its programmable chip business Altera to private equity company Silver Lake.