Intel on Monday announced its acquiring Israel based automotive technology firm Mobileye, that used to be a partner of Tesla, for $14.7 billion which would propel the US based chip maker’s ambition to develop driver-less solutions for automakers.
Mobileye develops solutions and components for autonomous vehicles and has around 660 employees. The transaction is expected to be closed by December this year.
Intel estimates the driver-less and autonomous car industry would be worth $70 billion by 2030 and this acquisition of Mobileye is a step in the right direction.
“This acquisition is a great step forward for our shareholders, the automotive industry and consumers,” said Brian Krzanich, Intel CEO. “Intel provides critical foundational technologies for autonomous driving including plotting the car’s path and making real-time driving decisions. Mobileye brings the industry’s best automotive-grade computer vision and strong momentum with automakers and suppliers. Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers.”
Post acquisition, the combined entity will consist of Mobileye and Intel’s Automated Driving Group, will be headquartered in Israel and led by Prof. Amnon Shashua, Mobileye’s CoFounder, Chairman and CTO. Intel Senior Vice President Doug Davis will oversee the combined organization’s engagement across Intel’s business groups and will report to Prof. Amnon Shashua after the transaction’s closing.
Intel said the combined organization will support both companies’ existing production programs and build upon relationships with automotive OEMs, Tier-1 suppliers and semiconductor partners to develop advanced driving assist, highly autonomous and fully autonomous driving programs.
Mobileye supplies technology solution to global automakers for their autonomous vehicles. The company was an early partner of autonomous luxury car maker Tesla but both the companies parted their way last year when the driver of the Tesla S car died in an accident when it was being driven hands-free. The Israeli firm had alleged that Tesla was not driving as per its safety guidelines.