Intel CEO aims to build chip plants with money raised from Mobileye IPO

Intel CEO aims to build chip plants with money raised from Mobileye IPO

7/12/2021 9:00:00 PM

Intel CEO aims to build chip plants with money raised from Mobileye IPO

:Intel Corp will keep most of the money it raises next year when it sells a stake in its Mobileye self-driving-vehicle components unit in a planned initial public offering, targeting some of those funds to build more Intel chip plants, Chief Executive Pat Gelsinger said on Tuesday.Intel shares were up 4.1per

:Intel Corp will keep most of the money it raises next year when it sells a stake in its Mobileye self-driving-vehicle components unit in a planned initial public offering, targeting some of those funds to build more Intel chip plants, Chief Executive Pat Gelsinger said on Tuesday.

Intel shares were up 4.1per cent at midday Tuesday after surging as much as 8per cent during the session, as Wall Street cheered the chip giant's move to take Mobileye public. Gelsinger said the IPO will allow Mobileye to grow more easily as global carmakers spend billions of dollars to accelerate their transition to electric and self-driving vehicles.

"This is the right time," he said on a conference call."This is a unique asset and we're going to make the right moves to fully realize that potential."Gelsinger said Intel will retain a majority stake in Mobileye and will also receive"the majority of the proceeds" from the IPO. He declined to specify the size of the stake that would be sold or a fundraising target, but said that"certainly it will be helpful in our overall aggressive buildout of plants." headtopics.com

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Intel has said it plans to build two chip plants in Arizona, and add other plants in the United States and Europe at sites that have not been announced.A chip shortage has afflicted industries globally including the auto sector. U.S. President Joe Biden's administration wants Congress to approve US$52 billion to expand U.S. semiconductor manufacturing.

Before Tuesday's gains, Intel shares had barely budged this year, vastly underperforming a more than 40per cent rise in the Philadelphia SE Semiconductor index, as the chipmaker struggles to ramp up its technology as rivals have been making more energy-efficient microprocessors.

Mobileye, an Israeli company that Intel bought for about US$15 billion five years ago, could be valued at more than US$50 billion during its U.S. IPO in mid-2022, a source previously told Reuters. Gelsinger said that value would be set closer to the IPO and he declined to say how much of Mobileye will be sold, repeating Intel would retain a majority stake.

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Mobileye has a rich roster of clients, including BMW, Audi, Volkswagen, Nissan, Honda and General Motors.Its technology has been deployed by automakers as they equip their cars with driver-assistance systems or experiment with self-driving technology in their shift toward electric vehicles. Intel expects Mobileye's revenue to grow over 40per cent this year. headtopics.com

WestPark Capital analyst Ruben Roy liked the deal for the cash and greater strategic focus it could bring Intel. Roy said Mobileye should see compound annual growth of around 25per cent to 30per cent over the next several years.(Reporting by Nivedita Balu and Chavi Mehta in Bengaluru, and Ben Klayman in Detroit; Editing by Anil D'Silva and David Gregorio)

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Intel to list shares in self-driving car unit Mobileye - WSJ:Intel Corp is planning to publicly list shares in its self-driving-car unit Mobileye, which could value the unit at north of US$50 billion ,the Wall Street Journal reported on Monday, citing people familiar with the matter.However, there are no guarantees Intel will ultimately follow through with an offering

Intel to list shares in self-driving car unit Mobileye - sourceIntel Corp is planning to publicly list shares in its self-driving-car unit Mobileye, which could value the Israeli unit at more than US$50 billion, a person familiar with the matter told Reuters.Intel, the largest employer of Israel's high tech industry with nearly 14,000 workers, bought autonomous vehic

Intel plans to list shares in self-driving car unit Mobileye:Intel Corp said on Monday it plans to take self-driving-car unit Mobileye public in the United States in mid-2022, a deal which could value the Israeli unit at more than US$50 billion, a person familiar with the matter told Reuters.Chip giant Intel, the largest employer of Israel's high-tech industry with ne

Intel shares surge on potential windfall from Mobileye listingIntel Corp shares surged 7per cent on Tuesday as Wall Street cheered the chip giant's move to take its self-driving-car unit public at a time when global carmakers are spending billions of dollars to accelerate their transition to electric vehicles.The chipmaker's shares have barely budged this year, vast

Intel to list shares in self-driving car unit Mobileye - WSJ:Intel Corp is planning to publicly list shares in its self-driving-car unit Mobileye, which could value the unit at north of US$50 billion ,the Wall Street Journal reported on Monday, citing people familiar with the matter.However, there are no guarantees Intel will ultimately follow through with an offering

Intel to list shares in self-driving car unit Mobileye - sourceIntel Corp is planning to publicly list shares in its self-driving-car unit Mobileye, which could value the Israeli unit at more than US$50 billion, a person familiar with the matter told Reuters.Intel, the largest employer of Israel's high tech industry with nearly 14,000 workers, bought autonomous vehic