Robohub.org
 

Intel to acquire Mobileye for $15.3 billion

by
14 March 2017



share this:

Source: Intel

Intel announced plans to acquire Israel-based Mobileye, a developer of vision technology used in autonomous driving applications, for $15.3 billion. Mobileye share prices jumped from $47 to $61 (the tender offering price is $63.54) on the news, a 30% premium. The purchase marks the largest acquisition of an Israeli hi-tech company ever.

Source: Frost & Sullivan;VDS Automotive SYS Konferenz 2014/

This transaction jumpstarts Intel’s efforts to enter the emerging autonomous driving marketplace, an arena much different than Intel’s present business model. The process to design and bring a chip to market involves multiple levels of safety checks and approvals as well as incorporation into car company design plans – a process that often takes 4 to 5 years – which is why it makes sense to acquire a company already versed in those activities. As can be seen in the Frost & Sullivan chart on the right, we are presently producing cars with Level 2 and Level 3 automated systems. Intel wants to be a strategic partner going forward to fully automated and driverless Level 4 and Level 5 cars.

Mobileye is a pioneer in the development of vision systems for on-board Driving Assistance Systems; providing data for decision making applications such as Mobileye’s Adaptive Cruise Control, Lane Departure Warning, Forward Collision Warning, Headway Monitoring, High Beam Assist and more. Mobileye technology is already included in BMW 5-Series, 6-Series, 7-Series, Volvo S80, XC70 and V70 models, and Buick Lucerne, Cadillac DTS and STS.

Last year, Intel reorganized and created a new Autonomous Driving Division which included strategic partnerships with, and investments in, Delphi, Mobileye and a bunch of smaller companies involved in the chipmaking and sensor process. Thus, with this acquisition, Intel gains the ability to offer automakers a larger package of all of the components they will need as vehicles become autonomous and perhaps gaining, as well, on their competitors in the field: NXP Semiconductors, Freescale Semiconductor, Cypress Semiconductor, and STMicroelectronics, the company that makes Mobileye’s chips.

Mobileye’s newest chip, the EyeQ4, designed for computer vision processing in ADAS applications, is a low-power supercomputer on a chip. The design features are described in this article by Imagination Technology.

Bottom line:

“They’re paying a huge premium in order to catch up, to get into the front of the line, rather than attempt to build from scratch,” said Mike Ramsey, an analyst with technology researcher Gartner in a BloombergTechnology article.



tags: , , , , ,


Frank Tobe is the owner and publisher of The Robot Report, and is also a panel member for Robohub's Robotics by Invitation series.
Frank Tobe is the owner and publisher of The Robot Report, and is also a panel member for Robohub's Robotics by Invitation series.





Related posts :



Tesla’s Optimus robot isn’t very impressive – but it may be a sign of better things to come

Musk has now unveiled a prototype of the robot, called Optimus, which he hopes to mass-produce and sell for less than US$20,000 (A$31,000).
04 October 2022, by

Bipedal robot achieves Guinness World Record in 100 metres

Cassie the robot, developed at Oregon State University, records the fastest 100 metres by a bipedal robot.
03 October 2022, by and

Breaking through the mucus barrier

A capsule that tunnels through mucus in the GI tract could be used to orally administer large protein drugs such as insulin.
02 October 2022, by

Women in Tech leadership resources from IMTS 2022

There’ve been quite a few events recently focusing on Women in Robotics, Women in Manufacturing, Women in 3D Printing, in Engineering, and in Tech Leadership. One of the largest tradeshows in the US is IMTS 2022. Here I bring you some resources shared in the curated technical content and leadership sessions.
29 September 2022, by and

MIT engineers build a battery-free, wireless underwater camera

The device could help scientists explore unknown regions of the ocean, track pollution, or monitor the effects of climate change.
27 September 2022, by

How do we control robots on the moon?

In the future, we imagine that teams of robots will explore and develop the surface of nearby planets, moons and asteroids - taking samples, building structures, deploying instruments.
25 September 2022, by , and





©2021 - ROBOTS Association


 












©2021 - ROBOTS Association