Foreign media reports indicate that Ericsson is in talks to invest in Intel's Network and Edge (NEX) business, according

 to people familiar with the matter. This division produces 5G chips based on the x86 architecture, and Intel previously

 announced it would remain an anchor investor after the spinoff. Several analysts told Fierce Network that Ericsson is not

 the only company interested in the business.

Investment Model Draws Attention

Jack Gold, president of J.Gold Associates, noted that Ericsson and Intel have previously collaborated on custom chip 

development, arguing they have a shared interest in ensuring the survival of the NEX business. "Whether Ericsson will 

acquire NEX remains uncertain. Rather than a full acquisition, a joint investment with Intel is more likely." He emphasized 

in his analysis that any direct acquirer would need to obtain Intel's x86 architecture license. "Establishing a joint venture 

with Intel in which Intel holds a stake would both circumvent this restriction and leverage Intel's wafer fabs to ensure product 

performance."

Recon Analytics analyst Daryl Schoolar added that Ericsson and Intel have a "deep partnership," with both its virtualized

 radio access network (vRAN) and customized products using Intel chips. "Ericsson's investment in NEX makes commercial 

sense, but it needs to be controlled by Intel or a neutral party to avoid losing other customers."

AvidThink head Roy Chua stated, "It's unclear whether Ericsson will seek a controlling stake, but this move could be aimed

 at maintaining its vRAN/cRAN technology capabilities. There are alternatives that don't rely on a significant stake." He also

 noted that Ericsson could also choose to partner with AMD, turn to "ARM solutions from companies like Nvidia," or increase

 investment in application-specific integrated circuits (ASICs). However, both of these paths would require significant time and 

expense to restructure the system.