Intel Considers Sale of Network and Edge Division: The Full Picture of CEO Lip-Bu Tan's 'Return to Basics' Strategy

Reports that semiconductor giant Intel is considering the sale of its network and edge computing division are causing a stir. Generating $5.8 billion in revenue in 2024, this division has long been a critical business area responsible for supplying chips for telecommunications equipment. Despite this, why is Intel moving to divest this unit? The background lies in a clear strategy championed by new CEO Lip-Bu Tan: a 'return to core business.'

1. Overview of the Sale Reports and Current Situation

According to a Reuters report in May 2025, Intel has already begun informal discussions with multiple potential buyers regarding the sale of its network and edge business. However, a formal sales process has not yet commenced, and no specific buyers or timelines have been disclosed. Intel has declined to comment on the matter.

The network and edge division manufactures chips for 5G-enabled communication infrastructure and has held strengths in the telecom and enterprise markets. Its 2024 revenue reached $5.8 billion, accounting for a significant portion of Intel's overall earnings.

2. CEO Lip-Bu Tan's Policy: Divesting Non-Core Assets

Intel's new CEO, Lip-Bu Tan, is a figure known for his time at Cadence Design Systems and as a Wall Street investor, recognized as a professional in corporate restructuring and business selection. Since taking office in 2024, he has consistently promoted a clear vision of 'focusing on core businesses.'

Tan stated the following at the 'Intel Vision' conference in March 2025:

As this statement suggests, the sale of the network and edge division is a logical extension of the management policy he envisions.

3. Strategic Background and Industry Impact

If this sale is realized, it could improve Intel's capital efficiency while potentially having a significant impact on the industry landscape. In the network sector specifically, companies like NVIDIA, AMD, and Qualcomm are strengthening their investments in AI and communication infrastructure, and Intel stepping back from this area could provide a tailwind for its competitors.

Furthermore, potential buyers are seen as including Marvell, Broadcom, or private equity funds. For these companies, integrating Intel's technology into their existing communication solutions could further enhance their competitiveness.

4. Future Outlook: 'Focus and Selection' as the Key to Intel's Revival

This consideration of a sale may be just the first step in Intel's revival. Having struggled with performance due to delays in manufacturing technology and the rapid advancement of competitors over the past few years, Intel is beginning to steer away from its traditional 'keep everything in-house' strategy toward 'focus and selection.'

While it still holds a leading share in PC and server CPUs, competition with NVIDIA's GPU strategy and Apple's self-developed chips is becoming fierce. Therefore, divesting surplus business assets and reallocating resources can be seen as laying the groundwork for the next growth phase.

Intel is returning to its roots while moving toward a future that is not merely an extension of the past. Will the sale of the network and edge division be a symbolic move in that direction? We will be keeping a close eye on future developments.

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