Intel has confirmed the abandonment of its plans to sell its networking divisionwhich they considered divesting in whole or in part, after assessing the impact of the decision and coming to the conclusion that it is more likely to be successful as an internal division and not as a spinoff, according to Reuters.
As part of this decision, the company has suspended the negotiations it had with Ericsson AB, which was considering buying part of the shares of this division, which is known as NEX, and could even have kept it entirely. But as you see it at Intel now, “Keeping NEX in-house enables tighter integration between hardware, software and systems, strengthening offerings to AI, data center and edge customers«.
In the statement in which they shared the decision, they also commented that “After a full assessment of the strategic options for NEX, including a potential path as an independent company, we have decided that the business is best positioned for success within Intel.«.
It was at the beginning of 2025 when Intel announced that it intended to outsource the division and that it was beginning the process of identifying strategic investors to keep part of it, or NEX in its entirety. This change in plans highlights the strategy changes that Intel is experiencing after its previous CEO, Pat Gelsinger, was replaced by Lip-Bu Tan. Until now, of course, in most of these cases they have involved layoffs and outsourcing.
Intel has also received a significant injection of money this summer after selling 9.9% of the company to the US government, in addition to a $2 billion investment from SoftBank and another $5 billion from NVIDIA. Furthermore, the value of its shares has more than doubled this year. A good trend in order to get out of the crisis it is going through.
