Dec 3 (Reuters) – Intel said on Wednesday 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 $8.9 billion investment from the U.S. government for a 10% stake, and investments of $2 billion from SoftBank Group and $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 center, and edge,” the company said in a statement.
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 Lip-Bu Tan’s plans to shave off non-core businesses.
The company’s stock ticked down 0.3% in extended trading Wednesday after advancing less than 1% to $43.76 during the regular session.
(Reporting by Juby Babu in Mexico City and Max A. Cherney in San Francisco; Editing by Alan Barona and David Gregorio)