JERUSALEM - Mobileye (NASDAQ:MBLY), a leader in autonomous driving technologies, announced it will cease internal development of next-generation frequency modulated continuous wave (FMCW) lidars, a component previously considered crucial for autonomous and highly automated driving systems. The decision comes as part of a strategic shift following a review of the company's long-term technology roadmap.
The company stated that advancements in their EyeQ6-based computer vision perception and promising developments in their internally produced imaging radar have diminished the necessity of next-generation FMCW lidar in their future product plans. Coupled with cost-effective third-party time-of-flight lidar units exceeding expectations, Mobileye has reassessed the role of FMCW lidar technology in its portfolio.
Mobileye clarified that this change will not affect any existing customer product programs or the general product development pipeline. The company remains committed to its in-house imaging radar, which is on track to meet performance specifications and is slated for production in the upcoming year. This imaging radar is considered a strategic priority and a key technology for enhancing the cost and performance of Mobileye's eyes-off systems.
The winding down of the lidar R&D unit is expected to be completed by the end of 2024 and will impact approximately 100 employees. The anticipated operating expenses for the lidar R&D unit in 2024 are projected to be around $60 million, which includes an estimated $5 million related to share-based compensation expenses. While the discontinuation is not projected to materially affect Mobileye's financial results for 2024, it will enable the company to avoid future lidar development costs.
Mobileye, known for its expertise in artificial intelligence, computer vision, and mapping, has been instrumental in the widespread adoption of advanced driver-assistance systems. The company, founded in 1999 and separated from Intel (NASDAQ:INTC) in 2022, has equipped approximately 180 million vehicles globally with its technology as of the end of 2023. Mobileye's decision is based on a press release statement and reflects an evolving strategy in the autonomous driving technology landscape.
In other recent news, Qualcomm (NASDAQ:QCOM) is reportedly considering the acquisition of specific segments of Intel, including its client PC design business, to enhance its product offerings. This comes as Intel faces financial challenges, marked by a significant second-quarter downturn and an 8% decline in revenue from its PC client business. Meanwhile, Intel is exploring ways to improve its financial standing, including the potential divestiture of its programmable chip division, Altera.
Intel has also been under scrutiny from the U.S. Senate Permanent Subcommittee on Investigations regarding the use of American-manufactured semiconductors in Russian weaponry used in the Ukraine conflict. Intel, along with Analog Devices (NASDAQ:ADI), Advanced Micro Devices (NASDAQ:AMD), and Texas Instruments (NASDAQ:TXN), has been summoned to testify to assess compliance with export controls.
On the product front, Intel announced the launch of its Intel Core Ultra 200V series processors, designed for AI-enhanced consumer laptops. These processors promise exceptional performance, power efficiency, and significant advancements in graphics and AI compute capabilities. In line with this, Intel introduced a new PC chip named Lunar Lake, produced in part by Taiwan Semiconductor Manufacturing Co.
Analysts from Northland maintain an Outperform rating on Intel despite acknowledging the company's strategic missteps in its turnaround efforts. Intel's CEO, Pat Gelsinger, is preparing a strategic plan to divest non-core businesses and reduce capital expenditures, potentially including the sale of Altera. KeyBanc has revised Intel's future earnings per share forecasts downward due to the growing influence of non-controlling interests.
These are among the recent developments involving Qualcomm and Intel.
InvestingPro Insights
Intel Corporation (NASDAQ:INTC), the former parent company of Mobileye, is currently navigating a challenging phase. The company's stock has experienced substantial declines, with a significant hit over the last week. As the semiconductor giant aims to maintain its position as a prominent player in the industry, it's grappling with the reality of an expected drop in net income this year. This is reflected in the stock's performance, which has been trading near its 52-week low.
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