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Following Intel’s recent confirmation of its intention to streamline corporate hierarchy and simplify reporting lines, Reuters has reported that the company is now considering divesting its Network and Edge computing division. This strategic shift would enable Intel to sharpen its focus on personalized PC and data center markets while simultaneously reducing expenditures by eliminating non-core operations.
The Network and Edge business, which primarily caters to telecommunications infrastructure and computing needs, generated $5.8 billion in revenue last year. However, the segment faces formidable competition from industry giants such as Qualcomm and Broadcom, as well as NVIDIA, which is increasingly leveraging its GPU-accelerated technologies to establish a foothold in the telecom sector. Amid intensifying market pressures, Intel may ultimately choose to withdraw from this space and reallocate its resources toward its core computing ventures.
According to the Reuters report, Intel is said to have entered preliminary discussions with prospective buyers, although no definitive divestment plan has yet materialized. These talks remain in the early stages and could lead to various outcomes, including potential strategic partnerships instead of an outright sale.
Intel has declined to comment on the report.
Previously, Intel CEO Pat Gelsinger announced a sweeping reorganization aimed at significantly reducing layers of management to accelerate decision-making and product development. He also confirmed planned workforce reductions. Gelsinger articulated two central tenets guiding Intel’s transformation: to build the best products and to delight their customers.
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