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Intel today announced its intention to take Mobileye public in the United States in mid-2022 via an initial public offering (IPO) of freshly issued Mobileye stock, with the full approval of Intel’s board of directors. By forming a separate publicly traded company, Intel stockholders will be able to unlock the value of Mobileye, which will build on the firm’s outstanding track record and service its expanding market.
Mobileye will continue to be a strategic partner for Intel, with the two businesses collaborating on initiatives as they pursue the rise of computers in the automobile sector. By 20301, semiconductors are predicted to account for 20% of a premium vehicle’s total bill-of-materials (BOM). The Mobileye management team will stay in place, with Prof. Amnon Shashua remaining as CEO. As part of Mobileye, Intel teams focusing on lidar and radar development, as well as other Mobileye initiatives, will be brought together.
Mobileye has experienced significant revenue growth, achieved numerous technical innovations, and made significant investments directed at solving the most difficult scientific and technological problems in order to prepare for the deployment of autonomous driving at scale in the four years since it was acquired by Intel.
“The acquisition of Mobileye by Intel was a huge success. “Mobileye has earned record revenue year over year, with 2021 gains estimated to be more than 40% greater than 2020, illustrating the significant benefits of our ongoing cooperation for both companies,” stated Intel CEO Pat Gelsinger. “Amnon and I came to the conclusion that an IPO is the best way to capitalize on Mobileye’s track record of innovation while also unlocking value for shareholders.”
Mobileye is a global pioneer in advanced driver-assistance systems (ADAS) and self-driving solutions, a fast developing and evolving field that is revolutionising how products and people are transported around the world. In 2021, Mobileye will have shipped its 100 millionth EyeQ® system-on-chip (SoC), will have scaled autonomous vehicle (AV) test programmes across multiple cities in the United States, Europe, and Asia, will have unveiled its production robotaxi, and will have secured 41 new ADAS programme wins across more than 30 automakers globally. New programme victories include everything from basic driver assistance to next-generation driver aid and full self-driving systems. In addition, starting in 2023, the company has won various deals for mobility-as-a-service (MaaS) initiatives, as well as consumer and business-to-business car manufacturing designs for Mobileye’s self-driving system.
Recent announcements, such as the Intel Foundry Services Accelerator and dedicated capacity for the automobile industry, demonstrate Intel’s long-term commitment to the market. Mobileye’s strength in the automotive sector will continue to enable Intel to address the fast-growing silicon BOM potential in the automotive sector, while Intel will continue to support Mobileye with technical resources to offer industry-leading sensor technologies. Mobileye continues to benefit from Intel’s global presence, as well as its ability to provide a geographically diverse supply chain, global production network, and expertise in radar, lidar, and software.
Mobileye went public in 2014, and Intel bought it in 2017. Intel presently holds 100% of Mobileye stock and is likely to keep a majority stake in the company after the IPO. Intel has no plans to spin off or otherwise divest its majority stake in the company. The IPO, its terms, and ultimate timing are still up in the air, and are subject to market conditions.
Intel will continue to fully consolidate Mobileye as the majority shareholder. Intel’s financial projections for 2021 are not likely to be affected by the purchase.
