Relief has spread across the telecom industry after Intel confirmed that its network and edge business will remain within the company and will not be sold. The possible sale had raised serious concerns among major 5G equipment makers, especially Ericsson and Samsung, which rely heavily on Intel chips for their radio access network products.
Uncertainty had surrounded Intel network unit since late 2024, when reports suggested the business could be spun off or sold. The unit develops the Granite Rapids family of virtual RAN chips, which many customers consider a major improvement over the earlier Sapphire Rapids processors. A change in ownership had raised fears of supply risks, especially if the buyer turned out to be one of Intel own telecom customers.
Intel ended all speculation with a clear statement. A company spokesperson said, “After a thorough review of strategic options for NEX including a potential standalone path we determined the business is best positioned to succeed within Intel. Keeping NEX in house enables a tighter integration between silicon software and systems strengthening customer offerings across AI data center and edge. We remain focused on delivering for customers and creating long term value.”
The earlier plan to explore a divestment was part of Intel’s response to broader business challenges. The company had reported falling revenues and heavy losses in recent years, along with major job cuts and restructuring. Intel’s new chief executive Lip Bu Tan has made the turnaround of core PC and data center chip businesses his top priority.
Since then, Intel’s financial position has improved. The company reported stronger quarterly results, returned to profit, and secured major investments from SoftBank and Nvidia. These developments eased pressure on management and reduced the urgency to sell key assets.
The network business plays a critical role in 5G infrastructure, especially in virtual RAN where Intel still dominates using general purpose CPUs. Granite Rapids continues to receive strong support from telecom operators and vendors. Paco Pignatelli of Vodafone had said the new chips offer “much better capacity and efficiency” than earlier models.
For Ericsson and Samsung, Intel’s decision removes a major strategic risk and brings clarity to their future virtual RAN plans.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
