Intel Sunsets Network Switch Biz, Kills RISC-V Pathfinder Program

Intel’s disastrous Q4 2022 earnings found the company losing $661 million and its margins crashing to the lowest point in decades, so it isn’t surprising that the company announced new cost-cutting measures. From a report: That includes news that it would no longer invest in new products for its networking switch business, effectively sunsetting the unit much like it recently decided to end its Optane Memory business. Surprisingly, Intel also pulled the rug from under its respected RISC-V Pathfinder program without a formal announcement, raising questions about its commitment to its other broad investments in the RISC-V ecosystem. “NEX continues to do well and is a core part of our strategic transformation, but we will end future investments in our network switching product line, while still fully supporting existing products and customers,” said Intel CEO Pat Gelsinger. “Since my return, we have exited seven businesses, providing in excess of $1.5 billion in savings,” he added. However, Gelsinger also noted that he is still doing a thorough analysis across Intel’s portfolio to look for other cost-saving measures in areas that don’t generate strong returns. Intel’s networking switch business stems from acquiring Barefoot networks in 2019 for an undisclosed sum (the company had raised $144 million over several investment rounds). The Tofino series of network switches gave Intel yet another tool in its arsenal of data center ‘adjacencies’ that it could leverage to expand its data center revenue. However, this unit faces stiff competition from entrenched players like Broadcom, Cisco, and Nvidia’s Mellanox, making it an easy cost-cutting target. Read more of this story at Slashdot.