Intel may sell off its communications business as part of a deep review of its business.

Boss Paul Otellini said in April the firm was beginning a detailed strategic review. He suggested this would go beyond just cutting jobs. Analysts said last month that the comms business was first in the firing line.

Intel's IXP network processor and its Xscale business - which made mobile chips for phones and other mobile devices are being sold off as a single business, according to the San Jose Mercury. Other parts of Intel's communication business are also up for sale, according to the paper, which has seen documents relating to the sale.

The future of the firm's memory business and Itanium line is still not clear. Intel has lost ground against rival AMD recently. AMD is now expected to hit its target of 30 per cent market share/revenue.

Private equity groups are already looking at the various divisions, according to the paper. More from the SJMercury here.

Industry rumours have put potential job cuts as high as 16,000 - 16 per cent of its total staff. Last month Intel axed a 17-strong design team in Glasgow. ®