Intel Corp. is making big bets in the automotive industry with its latest acquisition of Mobileye, the Israel based automotive tech giant, for a valuation of approximately USD 15.3 billion. Mobileye is now officially a subsidiary of Intel Corp, as the latter has procured 84% of Mobileye’s outstanding ordinary shares, cite reliable sources. As per industry experts, this strategic deal would bring the U.S chipmaker onto the battleground, in direct competition with rivals such as Qualcomm Inc and Nvidia Corp., to develop driverless systems.
The overpriced acquisition of Mobileye would push Intel in the front row of automotive suppliers, especially at a time when the chipmaker is expanding its portfolio beyond the core semiconductor business. The deal has also been signaling the future trends of a hybrid autonomous driving landscape, where global automakers are trying to incorporate high-grade autonomous technologies in their vehicle models. This acquisition, in more ways than one, is fueling the already overheated valuations of driver-less vehicle startups.
Intel’s takeover of Mobileye is deemed by market analysts as a strategic move undertaken by the American conglomerate. Speaking of technological innovations, Mobileye brings forth a barrage of these advancements to the expanding autonomous industry. The company holds a broad service portfolio that includes roadway mapping, sensor chips, hi-tech camera technologies, machine learning, data fusion, and cloud software. Intel is no novice in autonomous vehicle sector, given that the company has already invested in quite a few startups engaged in developing various components of self-driving systems, from robotics to sensors. This time around, its collaboration with a global tech leader like Mobileye is an attempt taken by the company to deep-root its flag in the expanding autonomous car business space.
Though still at a nascent stage, analysts claim, autonomous vehicle market is growing at a fast pace. With some of the leading giants engaging themselves in this business space, it is no more a supposition that the sector would soon mark a new era in the overall automotive industry. Though there are several arm races taking place in this battleground, the collaboration of Intel and Mobileye has been monopolizing much of the attention. Intel has always been a force to be reckoned with, and experts assert this deal to be another sound strategic move taken by the U.S. mammoth to experience leadership in the fast-growing autonomous car market.
Satarupa develops content for Market Size Forecasters. An electrical engineer by qualification, she worked for two years in the electrical domain before switching her professional genre. Following her childhood passion, she opted for a career in writing and now pens down articles pertaining to marke...