Because of the Mobileye acquisition, Intel will also be able to combine its hardware products, such as high-performance computing chips and IoT solutions with Mobileye's image processing algorithms for autonomous driving systems. In turn, the deal gives Intel the potential to develop an autonomous driving product that incorporates cloud computing, Trendforce said.
Mobileye, an Israeli technology company, is a leader in developing both software and proprietary chip technology in support of a vision-based ADAS that provides warnings for collision prevention and mitigation. Mobileye commands 70% to 80% of the forward-looking vehicle camera marketplace, according to IHS Automotive.
Mike Ramsey, a research director at Gartner, said Mobileye's small, single-camera automotive vision system is both inexpensive and effective. It "uses a chip...that has a vision system embedded on [it] that recognizes vehicles, signs, pedestrians and lane lines and makes automatic emergency braking and lane-keeping possible.
In 2016, Mobileye's annual revenue increased by 48.7% to $350 million and the company's operating profit margin also reached 33.8%.
"In terms of technology, Mobileye has accumulated expertise in machine vision, deep learning, data analytics and high-resolution image mapping," Trendforce said.
Conversely, Intel's subsidiary Altera, which it acquired in 2015, develops field-programmable gate arrays (FPGAs) -- processing chips that can be customized for automotive applications.
The addition of Mobileye's technology "will considerably strengthen Intel's position in the automotive chip market," Trendforce stated.
While leveraging Mobileye to strengthen its existing collaboration with BMW, Intel can also leverage Mobileye's close relationships with carmakers and avoid the lengthy product verification process that new market entrants are often being subjected to.
"With this deal, Intel will thus be able to quickly seize emerging opportunities related to the demand for autonomous driving systems," Trendforce stated.
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