Intel Takes Bet On Connected Cars With Mobileye Acquisition
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Intel staked its claim to the largest ever acquisition in the connected car area with its $15.3 billion acquisition of Mobileye in late-March. The company is paying 42 times more than Mobileye's 2016 sales.
The deal would move Intel's automotive division to Israel, where Mobileye is headquartered, and will shift its core competency to advanced driver assistance systems, where Mobileye leads the market. It also sets up an immediate clash for top automotive chipmaker with the likes of NVIDIA and Qualcomm.
Intel justified the big price tag by pointing to the fact that autonomous vehicles are anticipated to represent a $70 billion market by 2030 and that, with Mobileye under its umbrella, Intel could reap $30 billion in chip sales in the coming decade.
The deal would move Intel's automotive division to Israel, where Mobileye is headquartered, and will shift its core competency to advanced driver assistance systems, where Mobileye leads the market. It also sets up an immediate clash for top automotive chipmaker with the likes of NVIDIA and Qualcomm.
Intel justified the big price tag by pointing to the fact that autonomous vehicles are anticipated to represent a $70 billion market by 2030 and that, with Mobileye under its umbrella, Intel could reap $30 billion in chip sales in the coming decade.
