Intel Drives Forward With IPO Plans for Mobileye Self-Driving Car Unit
Intel has said it is moving forward with IPO plans for its self-driving car unit, Mobileye. The company has been the bright spot for Intel, and has consistently outperformed its parent company in recent years. It currently has $774 million in cash on its balance sheet, and had a $75 million net loss from its $1.39 billion in revenue in Dec. The proceeds from the IPO will be used for debt repayment, corporate purposes and working capital. Jon Huntsman, a former US senator, will serve as chairman of the board.
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Intel’s self-driving car unit, Mobileye, has filed for an IPO in the U.S., but it hasn’t disclosed the amount of money it plans to raise. But the company’s sales have risen significantly since Intel acquired it. It generated $1 billion in revenue last year. Founded in 1999, Mobileye develops self-driving cars and advanced driver-assist systems for other automakers.
The company has supplied chip systems to automakers, including Ford and General Motors, and is now building its own fleet of autonomous vehicles. It plans to launch a robotic taxi service in Germany this year and a driverless delivery service in 2023. It is also testing driverless cars in New York City.
Intel’s stake in Mobileye
After buying Mobileye for $15.3 billion in 2017, Intel is now the biggest shareholder in the company’s self-driving car unit. The company competes with Qualcomm Inc. and Nvidia Corp., which have invested heavily in self-driving car technology.
The IPO could be a boost for Intel. The company’s stock has struggled this year, while other chip companies have been soaring. For example, graphics chip designer Nvidia and Taiwan-based TSMC have been doing well. This year, Intel has also announced plans to build two new chip plants in Arizona, costing $20 billion. The proceeds from Mobileye’s IPO could help the chipmaker fund its expansion plans.
IPO plans for Mobileye
Intel is pushing ahead with its plans to take Mobileye public, a unit it bought for $15.3 billion in 2017. The IPO could be worth over $50 billion, if the company succeeds. However, the market for new issues has collapsed this year, making an IPO a risky bet.
The company has filed for its IPO after reporting first-half revenue of $854 million, up 21% from the same period last year. The company expects to generate $1.4 billion of revenue in 2021. It also anticipates that its technology will be used in 266 million vehicles by 2030. The company has also signed deals with major automakers to use its technology in future vehicles.