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.
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!