Intel has made its presence felt in the autonomous car segment through acquisition of Mobileye – a company specialising in creating sensors for autonomous cars – through a $15.3 billion deal.
Mobileye is an Israeli company, which is into the manufacturing and development of an array of cameras and laser-based sensors currently used by 27 automakers around the world. With the acquisition of Mobileye, Intel can expand its portfolio as a chip manufacturer. While autonomous cars are still under development and the technology not mature, a head-start into the game is the key and Mobileye’s technology offers Intel enough nudge to give possible competitors a run for their money.
Mobileye’s acquisition will effectively help Intel strengthen its position in the autonomous cars segment by being able to deliver chips required by driverless cars. Mobileye and Intel have been working on autonomous cars for nearly a year now and it was a natural step for Intel to acquire Mobileye to accomplish much more than what they have been able to since they partnered.
Intel has a vision to serve the global car manufactures by offering them technology for autonomous cars, but it hasn’t got direct inroads into the autonomous cars market. Mobileye on the other hand has managed to garner a customer base that is impressive and the combined force of Intel’s processing expertise with that of the sensor know-how of Mobileye will pave way for a formidable force in the driverless tech market.
According to Brian Krzanich, CEO of Intel, it is not possible for every car manufacturer out there to bring out its own technology required to develop an autonomous car. It requires a huge amount of resource and intellectual support to develop the digital technology required for driverless car and as a traditional car manufacturer, investing in it may not be always economically viable. This is where the role of digital partners like Intel comes in.