Chip-maker giant Intel is set to take Mobileye, its Israeli self-driving car unit, public in the United States next year, Reuters reported on Monday.
The deal would reportedly value Mobileye at more than $50 billion.
Intel is the largest employer in Israel’s high-tech sector, with 14,000 employees, and it will likely retain Mobileye’s executive team and keep its majority ownership after the initial public offering of Mobileye stock, according to the report.
In 2017, Intel purchased Israeli self-driving car-maker Mobileye for $15.3 billion. The move reportedly put it in direct competition with its rivals, Nvidia and Qualcomm, in developing driverless systems for automakers.
“Intel has no intention to divest or spin off its majority ownership in Mobileye,” the company said in a statement, adding that it will continue to provide technical resources to the automaker.
Mobileye CEO Amnon Shashua and Intel CEO Pat Gelsinger said they were determined that the initial public offering “provides the best opportunity to build on Mobileye’s track record for innovation and unlock value for shareholders.”
“Carmakers, including General Motors, Ford and Toyota, are racing to shift from gasoline-powered lineups to all-electric power and have invested significantly on models with features such as driver-assist technology and self-driving system,” said the report.
“Mobileye, founded in 1999, has taken a different strategy from many of its self-driving car competitors,” it added, “with a current camera-based system that helps cars with adaptive cruise control and lane change assistance.”
