Read: Intel’s internal note to customers on spinning off its networking division

Intel has formally announced plans to spin off its networking and communications division — the Network and Edge Group (NEX) — as a separate company. In a memo sent to customers and employees, the company shared that it has begun the process of identifying strategic investors for the business. The move is part of new CEO Lip-Bu Tan’s broader strategy to streamline Intel’s portfolio and focus on core product segments.

What Intel said
While the plan wasn’t directly addressed during Intel’s June 24 earnings call, Tan had referred to monetizing “non-core assets” — a process that has already included selling a portion of its stake in Mobileye. In a statement, an Intel spokesperson confirmed the direction:
“We plan to establish key elements of our Networking and Communications business as a stand-alone company and we have begun the process of identifying strategic investors. Like Altera, we will remain an anchor investor enabling us to benefit from future upside as we position the business for future growth.”

This development coincides with other internal restructuring efforts, including a 15 percent workforce reduction and a re-evaluation of Intel’s foundry ambitions.

What the memo says
The memo to customers, written by Sachin Katti — head of NEX and Intel’s Chief Technology and AI Officer — was obtained and verified by CRN. It outlines the motivations behind the move and attempts to reassure customers that support and services will continue uninterrupted.