Intel plans to spin off its Mobileye autonomous vehicle subsidiary in early 2022, less than a year after the company acquired the company, the chip giant’s CEO said Wednesday.
Mark Hurd made the remarks during a call with analysts, saying the company would retain an ownership stake in Mobileye through the spinoff, though he declined to provide any financial details. Intel paid about $15 billion for Mobileye in June 2017.
“We saw a chance to create a large, profitable leader in the industry, and we believe the scale and capabilities that we’ve built through this acquisition position us well to do so,” Hurd said. “We also think having our own independent company in this space will allow us to focus more of our laser-like focus on autonomous technology and high-value solutions for our customers.”
Mobileye provides technology for advanced driver assistance systems, which help drivers prevent traffic collisions and take other steps to prevent being incapacitated in the event of a crash.
“We believe the two great companies will have similar cultures and values,” Hurd said, adding that the new company will have a similar reputation for innovation, customer-focused culture and commitment to quality.
The spinoff will keep about half of the company in the U.S. and keep the rest in Israel, as part of a decision to “shore up our global capabilities.”
“While maintaining a global company is good for Mobileye, we believe it is also good for Intel, which ultimately benefits from all the innovation that will emerge as the global race to build autonomous capabilities for self-driving cars accelerates,” Hurd said.
Intel has said it plans to spend up to $300 million to develop autonomous driving technologies in Israel. CEO Brian Krzanich said at a conference in May that the company would ramp up investment in Israel because it would be the key location in the U.S. to maintain Intel’s leadership in autonomous driving.