Intel plans to go public with the Mobileye autonomous car unit

December 6 (Reuters) – Intel Corp (INTC.O) on Monday announced plans to release the Mobileye self-driving car unit in the United States in mid-2022, a deal that could value the Israeli unit at more than $ 50 billion, a person familiar with the matter told Reuters.

Chip giant Intel, Israel’s largest employer in high-tech industry with nearly 14,000 workers, expects to retain Mobileye’s management team and retain a controlling stake in the unit after the initial public offering (IPO) of the newly issued Mobileye shares.

Intel does not intend to divest or split its controlling stake in Mobileye, the company said in a statement, adding that it would continue to provide technical resources to the automaker.

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The partnership continues to generate strong revenues as well as free cash flow for Mobileye that enables funding for the development of autonomous vehicles, Mobileye CEO Amnon Shashua said in a statement.

“Amnon and I determined that an IPO offered the best opportunity to build on Mobileye’s track record of innovation and create shareholder value,” said Intel CEO Pat Gelsinger, in the press release.

Gelsinger has come under pressure from activist investors like Third Point LLC to consider parting ways with its expensive chipmaking operations, even as the company seeks to expand its advanced chipmaking capability in the United States and Europe. in the context of a global semiconductor shortage. Read more

Intel bought Mobileye for $ 15.3 billion in 2017, putting it in direct competition with rivals Nvidia Corp (NVDA.O) and Qualcomm Inc (QCOM.O) to develop driverless systems for global automakers.

Automakers including General Motors (GM.N), Ford (FN), and Toyota (7203.T) are pushing to move from gasoline ranges to all electric powertrains and have invested heavily in models with features like as driver assistance technology. and autonomous driving system.

Mobileye, founded in 1999, has adopted a different strategy than many of its self-driving car competitors, with a current camera-based system that helps cars with adaptive cruise control and lane change assistance. Read more

The company plans to eventually build its own “lidar” sensor to help its cars map the road in three dimensions and in the meantime uses lidar units from Luminar Technologies (LAZR.O) on its initial robotic axis.

Although owned by Intel, Mobileye has never used Intel factories to manufacture its chips, relying instead on Taiwan Semiconductor Manufacturing Co (2330.TW) for all of its “EyeQ” chips to date.

The Wall Street Journal first reported Intel’s intention to list the shares.

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Reporting by Stephen Nellis in San Francisco and Akriti Sharma, Jahnavi Nidumulu and Bhargav Acharya in Bengaluru; Additional reporting by Sneha Bhowmik; Editing by Devika Syamnath, Rashmi Aich, Sonya Hepinstall and Sriraj Kalluvila

Our Standards: Thomson Reuters Trust Principles.

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