Intel says it will keep networking and communications unit
The chip maker has considerably improved its cash position as a result, finance chief Dave Zinsner says
[SAN FRANCISCO] Intel said on Wednesday (Dec 3) that it has opted to keep its networking and communications unit in the company following a review of strategic options for the unit.
Intel had previously explored selling various assets while it weighed options on how to improve its financial position. Over the summer, Intel clinched an US$8.9 billion investment from the US government for a 10 per cent stake, and investments of US$2 billion from SoftBank Group and US$5 billion from Nvidia.
The chip maker has considerably improved its cash position as a result, finance chief Dave Zinsner said when Intel released third-quarter results.
Intel determined after its review of selling the networking group, or NEX, that it would be beneficial to hang on to the assets.
“Keeping NEX in-house enables tighter integration between silicon, software and systems, strengthening customer offerings across AI, data centre, and edge,” the company said.
Intel had explored plans to spin out NEX earlier this year, Reuters reported. Intel was looking at the potential spin-out as part of CEO Tan Lip-Bu’s plans to shave off non-core businesses.
The company’s stock ticked down 0.3 per cent in extended trading on Wednesday after advancing less than 1 per cent to US$43.76 during the regular session. REUTERS
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