Intel’s acquisition of Mobileye for a valuation of more than USD 15 billion causes a shake-up of sorts in self-driving vehicle industry
Category: #world  By Satarupa De  Date: 2017-08-11
  • share
  • Twitter
  • Google Plus
  • Facebook
  • LinkedIn

Intel’s acquisition of Mobileye for a valuation of more than USD 15 billion causes a shake-up of sorts in self-driving vehicle industry

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.



About Author

Satarupa De

Email: satarupa.d@news.marketsizeforecasters.com   

Satarupa De

Satarupa develops content for Market Size Forecasters, Algosonline, and various other portals. An electrical engineer by qualification, she worked for two years in the core domain before switching her professional genre. Following her childhood passion, she opted for ...

Read More

More News By Satarupa De

Merck & WUSTL tie up to study gut bacteria with the help of CRISPR
Merck & WUSTL tie up to study gut bacteria with the help of CRISPR
By Satarupa De

Globally acclaimed genome editing leader, Merck has scarcely announced its strategic collaboration with the Washington University in St. Louis in a quest to optimize nutritional supplements. Apparently, this research c...

Boeing & Airbus push boundaries, enter after-sales service market
Boeing & Airbus push boundaries, enter after-sales service market
By Satarupa De

Riding high on the success of transcontinental airliners, renowned aircraft manufacturers Boeing and Airbus apparently now, are aiming to penetrate after-sales service market. Reportedly, these aircraft giants are set ...

Fox acquires seven of Sinclair’s broadcasting stations for $1.5bn
Fox acquires seven of Sinclair’s broadcasting stations for $1.5bn
By Satarupa De

Fox Broadcasting Co. has apparently signed an agreement with Sinclair Broadcast Group to purchase some of its television stations for a valuation of USD 1.5 billion. Allegedly, in a bid to win the Federal approval for ...