Intel Transfers Silicon Photonics Business to Jabil

To enhance its focus on core chip manufacturing technology, Intel has unveiled plans to transfer its silicon photonics module business to the prominent electronic manufacturing services firm, Jabil. Jabil, renowned for its electronic manufacturing services, boasts Apple as its major client.

This pivotal transaction encompasses the entirety of Intel's current silicon photonics module operations, encompassing both its existing customer base and ongoing technological developments in this domain. This strategic maneuver underscores Intel's commitment to divest from non-core business segments.

Intel continues to implement a deliberate strategy of divestment from non-core business sectors. Previously, the company announced the establishment of an independent entity for its programmable chip operations, with plans to take it public in 2026. This division was initially formed following Intel's acquisition of Altera for a substantial $16.7 billion in 2015. Additionally, Intel disclosed its departure from the NUC mini-PC business this July, granting ASUS the licensing rights to NUC design, which subsequently commenced the sale of NUC PC products in September.

The transfer of the silicon photonics module business to Jabil marks Intel's third major transaction in recent times and its tenth business exit in the past two and a half years.

Intel's CEO, Pat Gelsinger, emphasized during the third-quarter 2023 earnings call that the company's strategic focus now involves divesting the silicon photonic transceiver business. This shift allows Intel to concentrate on high-value-added component businesses and optical I/O solutions, supporting the expansion of artificial intelligence infrastructure.