In a bold strategic shift, Intel has announced plans to carve out its Network and Edge Group (NEX) to form a standalone company. This shift is intended to unlock Intel’s value and aid in focused specialized growth in the emerging networking and edge computing markets, while Intel retains its focus on core business of semiconductor manufacturing, and data centers. The company is also looking for strategic investment partners for the newly formed independent company. The Network and Edge Group will gain from the independence in managing the critical silicon solutions for communications, enterprise networking, and Ethernet-centric networking, offering them greater agility and focus. This is likely to advance innovation in 5G and AI infrastructure where edge computing and high speed data transfer connections need to be processed expediently. Intel will still maintain a primary investment in the newly spun-off company, akin to what Intel did with the Altera unit, to gain from its success.The announcement falls under a larger reorganization initiative by Intel’s CEO Lip-Bu Tan, who is focused on optimizing Intel’s operations, reducing Intel’s expenditures, reallocating resources, and reinvesting on its core competencies on PC and data center chips. The objective of the spin-off is to empower the NEX business to operate in a more agile manner, be more responsive to customer demands, and pursue additional market opportunities with greater efficacy. Intel’s remaining share in the new company is still undisclosed along with the timeline of the spinoff.
Around the web
