Intel has announced that it is spinning off its networking chip unit, as part of its plans to shed activities that are not part of its core business. Intel is currently in the process of identifying strategic investors, with the aim of spinning off the division but is committed to remain a major shareholder in the new company. Beyond the plan to spin off the division - no date for the move was given and no valuation for the activity was published.
The networking division, which develops advanced communication and network cards for data centers and AI, employs thousands of employees, of which about 400 are in Israel, in the company's offices in Petah Tikva, Jerusalem and Haifa. One of Intel's vice presidents in Israel is the division's local development manager, Sharon Elmosnino-Almog.
Intel's networking unit competes, among others, with Mellanox, which was acquired by Nvidia, as well as Marvell and Broadcom.
The Networking and Edge Division (formerly: NEX) is considered the third most important at Intel, after the PC chip division, the company's leading division, and the server core processor division. The division reported last year separately from the other activities, but was merged with the server division in the first quarter of 2025 and its revenue was not known. In 2024, the division's revenue was $5.8 billion, up 1% from 2023. In the fourth quarter, revenue increased by 10% compared with the corresponding quarter the previous year.
Published by Globes, Israel business news - en.globes.co.il - on July 27, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.