The U.S. chip maker is buying the Israeli company that dominates the global market for advanced driver-assistance and anti-collision systems. Fred Katayama reports.
Intel getting into the driver's seat of autonomous driving. The chipmaker is buying Israel's driverless technology firm, Mobileye. It's paying $15.3 billion in cash. It's the largest ever purchase of an Israeli high-tech company. Mobileye dominates the global market for advanced driver-assistance and anti-collision systems. The two companies aren't strangers. They're working together with BMW to put 40 self-driving test vehicles on the road. That's scheduled for the second half of this year. While Mobileye works with STMicroelectronics to develop driver-assistance systems, it's teaming with Intel for chips that aim to be used in fully autonomous vehicles scheduled to be delivered around 2021. Just before the deal was announced, SunTrust Robinson Humphrey analyst William Stein said "It would instantly make Intel the clear and dominant player in advanced driver assistance systems." He added that the valuation looks reasonable. Mobileye shares zooming roughly 30 percent higher, adding on to their 24 percent gain already this year. Intel shares retreating.