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Intel accelerates self-drive car plans with $15bn swoop

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“Intel aims to make its second-biggest acquisition – a $15bn deal for Israel’s Mobileye – in a bold move to dominate technology for self-driving cars.

The US chipmaker will pay $63.54 a share in cash for Jerusalem-based Mobileye, the firms said in a joint statement. Mobileye shares surged 30pc in premarket trading in New York.

Intel is trying to accelerate a push into what many chip companies view as the next big opportunity: self-driving cars and the data they generate.

The €14bn deal gives Intel the ability to offer carmakers a larger package of all the components needed as vehicles become autonomous. Intel estimates the vehicle systems, data and services market will be worth $70bn (€65bn) by 2030.

“Together, we can accelerate the future of autonomous driving with improved performance in a cloud-to-car solution at a lower cost for automakers,” Intel ceo Brian Krzanich said.

While Intel’s chips are dominant in personal computers and datacentres, the world’s largest semiconductor maker has struggled in other areas where semiconductors based on ARM designs have prevailed. Under Krzanich, Intel has sought to break into everything from drones to cash registers. That’s generated a limited amount of new revenue that hasn’t yet fired up overall sales growth, leaving it reliant on PCs and servers for its profit.”

This is an excerpt taken from the Irish Independent and written by Ian King. It can be read in full here.

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