Intel strengthens its semiconductor business as Mobileye goes public
Mobileye, developer of advanced driver-assistance systems (ADAS) and autonomous driving technologies, has raised $861 million as its shares became public at Nasdaq on Wednesday.
The Israel-based company was acquired by global chip giant Intel in 2017 for $15,3 bn and reached a market value of $17 billion after the initial public offering (IPO). The stocks of Mobileye jumped 37% following the IPO and reached $27,85.
Intel hopes to provide fresh blood to its chip business through the IPO, as the company faces increasing competition from mostly local chipmakers, such as Nvidia and AMD. Intel, which filed for the IPO of Mobileye in March, plans to increase the number of its chip factories with the funds gathered at the IPO. However, according to CNBC, the market cap of Mobileye has remained well below expectations.
Mobileye has gathered much attention in recent years, as the company has partnered with several automakers, including BMW, Volkswagen, GM, Ford and Audi. Established in 1999, Mobileye announced $460 million in revenue in the second quarter.
At the beginning of 2022, Mobileye announced a partnership with Geely's Zeekr to develop autonomous vehicles, expanding its ADAS and self-driving business, which includes the "EyeQ" camera, chips and software.