US chip giant Intel CEO Pat Gelsinger (Pat Gelsinger) said that Intel will retain plans to sell at the time of its initial public offering (IPO) next year. Most of the funds raised when its self-driving car unit Mobileye became a stake, the goal is to use it to build more chip factories .
Wall Street welcomed the chip giant's move to list Mobileye. Kissinger said that as global automakers spend billions of dollars to accelerate the transition to electric and self-driving cars, going public will make it easier for Mobileye to achieve growth . He said: "Now is the time. This is a unique asset. We will take the right actions to fully tap its potential."
Kissinger said that Intel will retain a majority stake in Mobileye and will retain "most of the proceeds" from the initial public offering. He declined to disclose details such as the size of the shares to be sold or the funding target, but said that "this will definitely help our overall aggressive factory construction plan."
Intel has said that the company plans to build two chip factories in Arizona and add other factories in the United States and Europe, but the location has not yet been announced.
The shortage of chip supply has plagued various industries around the world, including the automotive industry. The administration led by the President of the United States hopes that Congress will approve a $52 billion subsidy program to help expand the US semiconductor manufacturing industry.
Intel's stock price has hardly changed this year, and its performance is far inferior to the Philadelphia SE Semiconductor Index (SOX), which rose by more than 40%. Because as competitors have been making more energy-efficient microprocessors, Intel is working hard to improve its technology.
Sources previously revealed that the Israeli company Mobileye, which Intel acquired for approximately US$15 billion five years ago, may be valued at more than US$50 billion at the time of the US IPO in mid-2022. Kissinger said that the valuation is quite close, but he declined to disclose how many shares Mobileye will sell, and reiterated that Intel will retain a majority stake.
Mobileye has many well-known customers, including BMW, Audi, Volkswagen, Nissan, Honda and General Motors. The company’s technology has been deployed by automakers because they have equipped their cars with driver-assisted driving systems or have tested autonomous driving technology in the process of shifting to electric vehicles. Intel expects Mobileye's revenue this year to grow by more than 40%.
Westpark Capital analyst Ruben Roy (Ruben Roy) is very supportive of this transaction, because it may bring more cash to Intel to help it focus on strategic priorities. Roy predicts that in the next few years, Mobileye's compound annual growth rate should be around 25% to 30%.
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