Electronics Weekly
Plans include both selling the unit and putting it into a partnership with another company. It is said that Intel has already talked to other companies about this plan. In April it sold 51% of Altera to Silver Lake for $8.75 billion.
Previous partnership sales have been with the investment company Apollo, where Apollo put up $11 billion for a 49% stake in Intel’s Fab 34 in Ireland and another where Intel sold a 20% stake in its IMS Nanofabrication business to Bain Capital
Intel is said to have interviewed investment bankers to choose one to manage the divestment process of NEX.
The NEX Group generated revenue of $5.8 billion last year down from $8.4 billion in 2022. The unit is not succeeding in a market which is increasingly owned by Broadcom and is no longer seen as strategic to Intel’s focus on datacentre and PC. Intel CEO Lip-Bu Tan says he is “refocussing on Intel’s core product franchise.”
In Q1, Intel reported NEX Group revenues as part of its PC and datacentre revenues rather than as a separate unit.
At the end of last year Intel had $50 billion of debt and at the end of March this year it had $21 billion of cash and short-term investments.
