Intel buys Mobileye in deal worth billions

Intel has finalised an agreement to buy Israeli autonomous vehicle technology firm Mobileye for $US15.3 billion (A$20.2 billion).

The Mobileye purchase could push Intel into the front ranks of automotive suppliers at a time when the world’s carmakers and suppliers are keen to acquire autonomous vehicle technology, Drive.com.au reports.

Mobileye brings a broad portfolio that includes cameras, sensor chips, in-car networking, roadway mapping, machine learning, cloud software and data fusion and management.

“This is a tremendous opportunity for them to get into a market that has significant growth opportunities,” says Betsy Van Hees, an analyst at Loop Capital Markets.

“Mobileye’s technology is very critical… The price seems fair,” she adds.
However, industry newsletter Semiconductor Advisors notes Intel’s acquisition of Mobileye is a strategic move “very far outside its core business franchise”.

Intel chief executive Brian Krzanich says the acquisition is like merging the “eyes of the autonomous car with the intelligent brain that actually drives the car.”

Mobileye Chairman Amnon Shashua told Reuters earlier this year that building a truly autonomous car requires more than one player.

“The idea is to have a number of partners to share resources and data.”
Mobileye and Intel are already collaborating with German automaker BMW on a project to put a fleet of around 40 self-driving test vehicles on the road in the second half of this year.