Intel is considering a divestment of its Network and Edge Group (NEX) in an effort to streamline its strategy and focus on rebuilding its struggling chip business.

According to a report from Reuters, the chip giant has already engaged with third parties regarding a potential sale, but has yet to solicit any bids or enter into any formal negotiations.

The report further claimed that Intel has interviewed multiple investment bankers ahead of selecting an advisor for the sale, but has not yet hired anyone to oversee the process.

The report comes two months after Intel appointed Lip-Bu Tan as CEO following the sudden departure of Pat Gelsinger in December 2024.

Speaking in Taipei on Monday, Tan said that Intel currently has a 68 percent share of the PC chip market and 55 percent of the data center market, adding “that’s something we’re going to expand and build on,” per the Reuters report.

Tan’s comments reinforce the strategy he outlined in a memo sent to employees titled ‘Our Path Forward’ in April, in which he said he wanted the company to “get back to [its] roots” and become an “engineering-focused company” once again.

Speaking at Intel’s Foundry Direct Connect event in San Jose last month, Tan further said that he wanted to once again make Intel Foundry a success by strengthening its R&D efforts and manufacturing capabilities.

The sale is being explored because the unit is no longer relevant to the strategy Tan wants to pursue, Reuters said, citing unnamed sources.

As of Q1 2025, Intel has chosen to integrate the financial results for its NEX group into its PC and data center groups, meaning revenue for the segment was not reported in the company’s latest financial results. For FY2024, its NEX group posted revenues of $5.8 billion, up 1 percent on 2023.