Intel Corp.
INTC 0.10%
said it has filed paperwork to take its Mobileye self-driving car unit public as the semiconductor giant tries to spark investor enthusiasm in its own shares and capitalize on growing demand for automated driving.
Intel last year said it was going to list Israel-based Mobileye, which it bought in 2017 for around $15 billion. People familiar with the matter have said the unit could fetch a valuation above $50 billion.
Pat Gelsinger,
who became the chip company’s chief executive last year, has been trying to remake Intel through steps such as investing in new chip-making factories and bolstering its engineering team. Intel last month agreed to buy Israeli chip company
Tower Semiconductor Ltd.
for nearly $6 billion. The moves have failed to boost its share price, though, amid concerns the spending will weigh on results in the near-term.
On Monday, Intel said it has confidentially submitted a draft registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering. Intel has said it expected the listing to take place in mid-2022 and that it expects to retain a majority share.
The Santa Clara, Calif., chip maker said it hasn’t yet determined the number of shares to be offered or the expected price range.
The Mobileye filing submitted to the SEC isn’t yet visible to the public because the company has taken advantage of the commonly used confidential-filing provision introduced in 2012 as part of the Jumpstart Our Business Startups Act.
General Motors Co.
could follow a similar path with its Cruise autonomous-car division, RBC Capital has said. The car maker hasn’t detailed its plans.
The protracted global chip shortage that has hit car makers hard has led to closer ties between auto and chip companies.
Ford Motor Co.
last year announced a strategic agreement with
GlobalFoundries Inc.
to develop chips, and GM said it would team up with
Qualcomm Inc.
to co-develop and manufacture chips.
Mr. Gelsinger has said the appetite of the auto industry for processors is making it a more critical customer segment for semiconductor companies
Mobileye had about $1.4 billion in revenue in 2021, roughly 40% higher than the prior year, the unit’s CEO,
Amnon Shashua,
said in January. The company has enjoyed strong demand for its technology, he said, with a pipeline of about 50 million vehicles for its equipment at the start of the year, up from around 37 million vehicles in 2020.
Write to Colin Kellaher at [email protected]
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George is Digismak’s reported cum editor with 13 years of experience in Journalism