Intel Corp. is planning to spin off its augmented reality division into a separate company and sell off a majority of its shareholding, according to sources quoted by Bloomberg.

The report claims that Intel is seeking multiple backers to invest in the spun-off business and is looking to raise about $350 million from its divestiture. The yet-to-be-named business would include employees from Recon Instruments, an AR company Intel acquired in 2015 and shut down last year.

Bloomberg said the division has been “developing smart glasses that pair by Bluetooth with a mobile phone” that “will be able to display contextual information into the wearer’s field of view with a laser-based projector that reflects off the lens and onto the retina” and that the glasses may be launched later this year.

The move by Intel to divest itself of its AR unit may be part of a broader shift by the chipmaker to focus on core product lines and internal components. In July, a report claimed that Intel had shut down its wearables business unit, which focused on products such as fitness trackers, but it didn’t exit the market completely. It continued to produce chips, in this case its Curie Modules that are used by other companies in “internet of things” devices.

Later in 2017, Intel canned its development of Project Alloy, a mixed-reality headset platform it had announced in August 2016, for lack of partner interest. Intel said at the time that it would continue to invest in augmented and virtual reality technology, including RealSense depth sensing and WiGig-based wireless headset systems — both tech used by other companies in their own devices.

Still, Intel appears to retain some interest in AR. At the Consumer Electronics Show in Las Vegas early this month, Chief Executive Brian Krzanich (pictured) announced the opening of a Los Angeles-based studio space for the production of VR, AR and other new content.

Photo: Intel