Intel plans to IPO its self driving unit for $50B and then comes the to be largest silicon manufacturing location on the Planet

Intel is aiming for an initial public offering of the unit in mid-2022 and believes it can land a valuation of around $50 billion, according to reporting by The Wall Street Journal. Intel would retain majority ownership of Mobileye, which would be run by the self-driving-car unit’s current management team and include the recently acquired Moovit business as well as other Intel teams working on technology related to autonomous driving.

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The company says it will use the proceeds from the IPO to fund capital investments as part of its ambitious turnaround plan. Intel is close to spending nearly $19 billion a year now, and its capital expenditures are projected by analysts to shoot up to more than $26 billion next year. But that will still badly lag the $35 billion-plus that chip-making rivals [Taiwan Semiconductor]

Note that even after the IPO, Intel will continue to hold the majority stake in the company, In the last 12 months, Mobileye has generated revenues of $1.36B, with operating profits coming in at $471M (operating margin of ~35%).

The self-driving race is getting hot!

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Intel selects Ohio for ‘largest silicon manufacturing location.’


Planned facility by Intel

“At full buildout, the total investment in the site could grow to as much as $100 billion over the next decade, making it one of the largest semiconductor manufacturing sites globally,” reads Intel’s press release. But that isn’t a firm commitment — it’s more of a stretch goal if Intel gets federal subsidies.

Intel plans to invest at least $20B in a new chip manufacturing plant at New Albany - Ohio, as part of its chip-making expansion strategy. Over the last year, the firm has pledged more than $100 billion in investment. According to Intel CEO Pat Gelsinger, the site may eventually house eight chip manufacturers, or FABs, with a total investment of roughly $100 billion over the next decade.

Mr Gelsinger said in an interview that the new facility would produce some of Intel’s most cutting-edge CPUs. He indicated that planning for the first two facilities will begin immediately, with building beginning late in 2022 and production starting in 2025. In addition, the corporation has committed $100 million to the cause.

According to the corporation, the Intel factory in Ohio will produce 3,000 permanent employees. According to the report, the project is estimated to bring 7,000 construction jobs and tens of thousands of support jobs. Intel’s investment in Ohio was previously covered by Time magazine.

"China is doing everything to take over the global market," Mr Biden said. “So they can try to out-compete the rest of us and have a lot of applications, including military applications.”

“We were ranked number one in the world in R&D., But guess what? We now rank number nine,” said Biden, pointing how much US chip manufacturing has receded. “Today, 75 percent of production takes place in East Asia. Ninety percent of the most advanced chips are made in Taiwan.”

Ohio Lieutenant Governor Jon Husted said, "For every six cents of capital investment Ohio will make, Intel will make a dollar,"

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