Intel will buy Israeli-based Mobileye for $15 billion. The company specializes in creating chips and software for autonomous vehicles. A link has been sent to your friend's email address. Intel will buy Israeli-based Mobileye for $15 billion. The company specializes in creating chips and software for autonomous vehicles.
Intel's Mobileye unit has been awarded a contract to supply millions of autonomous vehicles. According to Reuters, eight million cars will be equipped with self-driving technologies and shipped off to an automaker stationed in Europe. Financial terms of the deal were not disclosed. Erez Dagan, senior vice president for advanced development and strategy at Mobileye told the publication that the contract will come into play in 2021 when Intel's Mobileye EyeQ5 chip is ready. The processor is an upgrade on the upcoming EyeQ4, which is due to be rolled out in the coming weeks.
What do you do when you snag market leadership in a huge business but can't find the next growth market as your original one matures? That's the problem that Qualcomm has been facing ever since its dominance in cell phone chips was threatened by the iPhone. The same device sent the once-powerful Wintel duopoly into reverse when the PC went from a huge growth engine into decline. The "solution" for each of these companies has been to acquire companies that make technology for the automobile industry. Last fall Qualcomm paid $46 billion to acquire automotive chip maker NXP and now Intel -- feeling left behind -- has placed a big bet on Mobileye -- the Israeli digital vision systems maker that generated $358 million in 2016 revenue -- up 49% from the year before -- and a 30% net margin.
Mobileye N.V. raised concerns with Tesla Motors Inc. Chief Executive Elon Musk more than a year ago about allowing its Autopilot system to be used for hands-free control of a vehicle, the computer-vision supplier said on Friday, escalating its public spat with the auto maker. Tesla and Mobileye have been locked in a war of words for weeks following the Israeli supplier saying it would no longer provide computer chips and algorithms to the electric vehicle maker. Mobileye sold Tesla important components for its...