Intel Reportedly Set to Divest Networking Division, Continuing Strategic Reshaping
San Francisco, CA – July 25, 2025 – Further signaling a significant strategic pivot, Intel Corporation is reportedly preparing to offload its networking solutions division, according to a recent report from The Register. This potential divestiture represents another substantial step in the semiconductor giant’s ongoing efforts to streamline its operations and refocus on core areas of its business.
While Intel has not yet officially confirmed the news, sources close to the company suggest that discussions regarding the sale of its networking assets are well underway. The networking division encompasses a range of products and technologies critical for building and managing modern communication infrastructures, including Ethernet controllers, network interface cards, and other components vital for data centers and enterprise networks.
This move would align with Intel’s broader strategy, initiated under CEO Pat Gelsinger, to concentrate on its CPU manufacturing capabilities, particularly its foundry services, and its key processor businesses for PCs and servers. Over the past few years, Intel has undertaken a series of significant divestitures and restructuring initiatives aimed at improving profitability and sharpening its competitive edge in a rapidly evolving technology landscape.
Previous notable actions have included the spin-off of its NAND flash memory business to SK Hynix (now Solidigm) and the sale of its smartphone modem business to Apple. The potential sale of the networking division would further underscore Intel’s commitment to shedding non-core assets and prioritizing investments in areas where it sees the greatest potential for future growth and market leadership.
The networking sector itself is dynamic, with significant innovation occurring in areas like 5G infrastructure, cloud networking, and high-speed interconnects. Whether Intel intends to sell the division as a whole to a single buyer or break it up into smaller, more specialized units remains to be seen. The outcome of any potential sale could have a notable impact on the competitive landscape within the networking hardware market.
Industry analysts suggest that such a divestiture, if finalized, would allow Intel to allocate capital more effectively towards its ambitious manufacturing expansion plans, including the development of new process technologies and the construction of advanced fabrication facilities. It could also enable the company to dedicate more engineering resources to its core CPU and GPU development, as well as its burgeoning AI-focused silicon efforts.
For employees within the networking division and for customers who rely on Intel’s networking products, the potential sale introduces a period of uncertainty. However, the company’s history of managing such transitions suggests a focus on ensuring business continuity and minimizing disruption to its customer base. The specific details of any agreement, including the identity of a potential acquirer and the terms of the transaction, will be closely watched by the industry.
As Intel continues its transformation, the reported plan to divest its networking business marks another significant chapter in its long and storied history. The company’s ongoing strategic adjustments reflect a proactive approach to navigating the complexities of the global semiconductor industry and positioning itself for sustained success in the years to come.
Intel to throw networking biz over the side of its rapidly shrinking ship
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