On December 3, 2025, Intel Corporation announced that after evaluating strategic options for its Network and Edge (NEX) division, it has decided to retain the business rather than divest it. Previously, Intel had explored selling off various assets to improve its financial position. However, this summer, Intel received an $8.9 billion investment from the U.S. government (for a 10% stake), along with a $2 billion investment from SoftBank Group and a $5 billion investment from NVIDIA. These capital injections have significantly improved Intel's cash position, supporting its strategic adjustments.

Strategic Assessment and Reasons for Retention

During the evaluation process, Intel found that keeping NEX within the company would allow for tighter integration between chips, software, and systems. This integration is expected to strengthen Intel's customer offerings in the fields of artificial intelligence (AI), data centers, and edge computing. Dave Zinsner, Intel's Chief Financial Officer, stated that the improved cash position due to the aforementioned investments has enabled Intel to reassess its business portfolio.

Additionally, Intel has terminated negotiations with Ericsson, with whom it had previously discussed the possibility of Ericsson acquiring a stake in NEX. This decision reflects the evolving transformation strategy of Intel's new CEO, Lip-Bu Tan, who took office in March of this year. Tan has been optimizing company operations through layoffs and the divestment of non-core businesses, and retaining the NEX division is the latest adjustment in this strategy.

The NEX division employs thousands of people globally, including approximately 400 in Israel. In 2024, the division generated $5.8 billion in revenue, up 1% year-over-year, accounting for about 10.9% of Intel's total revenue. Although Intel stopped reporting NEX revenue separately starting in the first quarter of 2025, its significance within the company's overall strategy remains substantial.

Future Outlook and Industry Impact

Intel's decision to retain NEX is not only beneficial for its development in AI, data centers, and edge computing but also likely to have far-reaching impacts on the entire industry. By keeping NEX, Intel can better integrate its technologies and resources, enhancing its competitiveness in key markets. Moreover, this decision indicates that Intel, after improving its financial situation, is beginning to refocus on core businesses to achieve long-term sustainable development.

In the highly competitive semiconductor market, Intel's strategic adjustment may affect its relationships with other competitors. For example, the gap between Intel and its competitors such as TSMC and Samsung Electronics had been widening. By retaining the NEX division and strengthening internal integration, Intel is poised to re-establish its advantageous position in future market competition.

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