Intel is planning to spin off its networking unit as the struggling chipmaker looks to shed assets and cut costs under the direction of new CEO Lip-Bu Tan, according to a Friday report.

After all, Lip-Bu Tan is not just tweaking the playbook for Intel stock – he’s rewriting it! Since stepping into the role in March 2025, Lip-Bu Tan has initiated a sweeping transformation that diverges sharply from the expansive, capital-heavy strategy of his predecessor, Pat Gelsinger.

Despite layoffs, Intel appears to remain committed to its ongoing site expansion in Arizona as it retreats from other planned projects.

Intel is planning to separate its networking and communications unit into a stand-alone company and has begun the process of identifying investors, the chipmaker said on Friday, as new CEO Lip-Bu Tan looks to streamline its operations.

Intel reported second-quarter results on Thursday that beat Wall Street expectations on revenue, as the company's new CEO Lip-Bu Tan announced significant cuts in chip factory construction. The stock fell about 5% in extended trading. Here's how the chipmaker did versus LSEG consensus estimates:

Even in the US, where there's a push for more domestic manufacturing, especially in semiconductors, by consecutive governments, Intel is ramping down construction. Lip-Bu Tan has said it is slowing construction on fabs in Ohio, which had already seen a delay to 2030 or beyond.

Intel has warned investors that it might be bowing out of the chipmaking business if it can't secure customers for its new Intel 14A process node.

Intel CEO Lip-Bu Tan has launched a sweeping campaign of fiscal restraint, marking a sharp break from the ambitious expansionism of his predecessor.

On Friday, Intel shares tumbled 8.5% as remarks from CEO Lip‑Bu Tan prompted concerns that he’s emphasizing expense reductions at the expense of the company’s