Intel Plans to Come Out with Ipo for Its Self-Driving Car Unit in 2022

    Intel wants to capitalize on its investment in the burgeoning car industry by listing the shares of its unit Mobileye by the middle of 2022.

    In a statement Monday, the company said that it would remain the majority shareholder after the initial public offering of Mobileye. Mobileye’s Amnon Shashua and his executive team will continue to stay.

    As per Bloomberg news, the share of Intel gained by 8% in early trading in New York on Tuesday. The stock this year gained just 2.3%, trailing the other chip peers of Intel and the broader index.

    According to analysts at Morgan Stanley, the news is significantly positive as intel can generate value from this business as they will continue to remain the majority owner, and also, the move will give additional capital.


    Intel’s CEO, Pat Gelsinger, since taking up the reins of the company in February, has shaken up the company in a bid to revive its fortunes. The world’s largest chipmaker was a dominant player but ceded its position to rivals like Advanced Micro Devices Inc.

    Mobileye has been a bright spot, however. The company, which Intel acquired in 2017 for about $15 billion, has grown consistently and faster than its parent company though it is in a nascent industry. Intel has projected, the automotive silicon market will make it to $115 billion by the end of the decade.

    Gelsinger said in a statement that he and Amnon Shasua are determined to make the IPO the best opportunity to unlock shareholders’ value and build on Mobileye’s track record for innovation.

    The shift to electric vehicles and autonomous cars is creating a huge demand for electronics. Mobileye makes chips and software are that work with sensors and allow vehicles to handle more functions on their own.

    Mobileye dispatched its 100 millionth EyeQ chip system and unveiled a six-seater vehicle that will be driverless ride-hailing services in Munich and Tel Aviv next year. As per Intel, Mobileye has got contracts from more than 30 automakers globally.

    Researcher Guidehouse Insights reports that Mobileye has a global market share of 80% for its driver assistance technology. Its unit, based in Israel, has tested its technology in Tokyo, Shanghai, Paris, and Detroit with its robot taxi fleet.

    The company had revenue of $ 326 million in the last quarter, up by 39% for the same period in 2020. Its operating income increased to $105 million, double that of the previous year. It expects the revenue to rise 40% for the current year. The transaction is not expected to impact Intel’s target for 2021 as per the company.

    In 2020 Intel had acquired an Israeli start-up, Moovit, for $900 million as a part of its move to enter transportation technology deeper.


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