Intel put the final nail in its Network and Edge Group (NEX)’s coffin last week, with news that what’s left of the dismantled business unit looks set to be spun off.

The embattled chipmaker’s Edge business was already integrated into its Client Computing Group (CCG), while the NEX unit was broken up, with several elements incorporated into both the CCG and the Data Center and Artificial Intelligence group (DCAI).

Having previously been floated as a potential divestiture, Intel’s NEX group is officially on the chopping block, with CEO Lip-Bu Tan telling staff in a memo published last week that the company was “laser-focused on strengthening our core product portfolio.”

So, who could buy Intel’s networking unit?

Broadcom

In a tale of just how quickly dynamics can shift in the semiconductor space, Intel has gone from a formidable market force to a fallen giant, while its rival Broadcom has gone from strength to strength, buoyed by its lucrative, and as yet controversial, takeover of VMware.

Broadcom was previously touted as a potential buyer of the beleaguered chip giant, with a reported team-up with Taiwan Semiconductor Manufacturing Co. (TSMC) floated in what would have seen the former take on Intel’s chip-design business, while the latter would have purchased Intel’s production facilities.

Nothing came of that purported takeover, of course, with Broadcom CEO Hock Tan having previously stated the firm did not have enough cash on hand for a “big” acquisition, though he would later add it was open to opportunities.

Prior SDxCentral reporting on such a deal suggests such a move could potentially boost Broadcom’s AI efforts, having seen AI-related revenues soar by 220% year over year in its fourth fiscal quarter of 2024.

Despite its struggles, Intel has been working away on AI chips for both consumer and data center customers, with its hopes placed firmly on its flagship 18A server hardware to such a degree that its 14A process could be sacrificed to save costs.

A potential takeover by Broadcom could help Broadcom drive more value from AI, after AI components accounted for some 41% of its overall semiconductor revenue in Q4 2024.

Given the firm already supplies custom chips to the likes of Google, Meta, and TikTok parent Bytedance, a potential purchase of Intel components could open up doors to even more big-name customers.

Nokia

Nokia is another natural candidate to potentially pick up Intel’s networking unit, given its existing portfolio of networking silicon and telecommunications infrastructure.

The pair have history, having recently penned an agreement that’ll see Nokia use Intel’s Xeon 6 processors to power the Finnish firm’s 5G network applications.

Despite that agreement, things haven’t always been rosy between the two.

Having chosen the chipmaker to supply hardware for its initial 5G radio access network (RAN) products – specifically its 10-nanometer (nm) Cannon Lake line – Nokia found itself having bet on the wrong horse. Intel suffered delays that pushed chip availability to 2019, some two years after they had been expected to be in customers’ hands.

Those delays led Nokia to shack up with Broadcom to support its 5G ReefShark chipset. But Intel’s current predicament could go some ways to turn its gaze back around.

It was Infinera, the optical networking unit Nokia acquired for $2.3 billion earlier this, that was the standout performer for the telecom giant in its most recent earnings, helping drive growth in its network infrastructure and cloud and network services in an otherwise flat quarter.

A potential Nokia acquisition of Intel's networking unit could align with new CEO Justin Hotard's strategy to pivot toward AI and data centers, while also supporting its offerings for its traditional telecoms clientele.

The Finnish firm is already redirecting research and development toward optical and Ethernet switching technologies after Hotard told investors that Nokia was behind the competition. Picking up Intel’s networking unit could help boost its expansion into these high-growth areas as it looks to meet expectations on and usability from hyperscalers and public cloud providers.

Ericsson

Could the Swedish telecom equipment giant be the one to snap up Intel’s networking business? A Light Reading report suggests Ericsson may be among the interested parties in a move that could boost its RAN efforts.

Networks were the main driver of the firm’s earnings for the second quarter of 2025, and any potential acquisition would look to maintain that growth.

A report from the Swedish vendor published earlier this year suggests that a considerable portion of the cloud RAN market relies on CPUs using Intel’s x86 architecture, acting as an “efficient and reliable solution for building commercial-grade cloud RAN products.”

Ericsson is among those RAN vendors that rely on Intel chips for its RAN systems, having enjoyed a storied partnership. The pair even teamed up with Red Hat in 2023 to jointly develop methods to reduce power consumption in RAN systems.

That same year, Ericsson had agreed to use Intel’s upcoming 18A processes to power its Cloud RAN solutions, with the former manufacturing custom 5G system-on-chips (SoCs) designed to increase network capacity.

An acquisition of Intel's networking unit would benefit Ericsson by securing its supply of segment-related hardware and potentially allowing it to dominate the market for RAN-optimized hardware – though the RAN market is projected to flatten with carriers expected to shift from expanding network footprints to increasing capacity.

Private equity

Instead of a tech firm, is it possible Intel might want to sell its networking business to a private equity firm?

It seems a logical option, and one that the semiconductor firm has already opted for having sold FPGA chip brand Altera to Silver Lake in April for $8.75 billion.

Similar to the Silver Lake deal, Intel wants to retain a stake in its networking business, which could sweeten the pot for a private equity firm as it would be able to provide support with knowledge of the channel, while maintaining control.

No potential private equity names have emerged though the likes of Silver Lake could be a rational option. The U.S.-based investment firm has a history of turning around tech firms, having revived Dell and then made billions after spinning out VMware before its eventual sale to Broadcom.

Among its prior, relevant purchases, Silver Lake injected $400 million to support Spirent Communications’ Viavi Solutions acquisition, while also having invested in Indian IT giant Jio and German vendor Software AG.

There’s also Brookfield Asset Management, which previously joined with Intel to co-invest in semiconductor fab projects; or Apollo Global Management ,which purchased Rackspace Technology back in 2016, while also offering $11 billion to acquire Intel’s Fab 34 manufacturing site in Ireland.

Should Intel opt for the same route it went down with its Altera purchase, there wouldn’t be a shortage of viable suitors.

Huawei/ZTE

The most unlikely of this list, Chinese equipment giants Huawei and ZTE may be far-fetched suitors, but not without motive.

With both firms long blacklisted by the U.S. government and restricted from accessing key American technologies, any suggestion that either could snap up a core Intel unit would set off regulatory klaxons in Washington, D.C. Further, the Trump administration would almost certainly block any deal where an Intel division would end up fully foreign-owned, let alone Chinese ownership.

Geopolitics aside, however, the rationale exists. Both brands are pushing hard into self-reliant chip development and would benefit from access to Intel’s networking IP, particularly in areas like cloud RAN, optical transport, and data center silicon.

Huawei has already shown considerable innovation in its homegrown chip efforts, as seen in the development of the 7nm-class Kirin 9000S and its renewed push into 5G and server hardware, like its CloudMatrix 384s, despite sizable sanctions.

ZTE, for its part, is less flashy but still formidable in telecom infrastructure, having quietly rebuilt its global presence after escaping near-collapse under the weight of U.S. restrictions in 2018.

Both firms have strong footholds across various facets of the telecom markets, whereas some Western firms are losing ground – and Intel’s networking portfolio could further support that strength.

Still, such a deal would be dead on arrival in most Western jurisdictions. Intel, already under pressure from regulators and its technology deeply embedded in the U.S. national tech strategy, is unlikely to entertain interest for its networking assets from Chinese buyers, regardless of price.