Intel’s (INTC - Free Report) Israel-based autonomous driving unit — Mobileye — has announced two new agreements with SAIC, China and in Daegu Metropolitan City, South Korea.
The agreements are directed toward fortifying the company’s global footprint in driver-assistance systems (ADAS) and autonomous mobility-as-a-service (MaaS).
More on the Latest Agreements
SAIC is a leading Chinese OEM and plans to use Mobileye’s Road Experience Management (REM) mapping technology for deployment of L2+ ADAS. The SAIC deal is Mobileye’s first design win with a major Chinese automaker.
Notably, the SAIC vehicles will contribute to Mobileye’s RoadBook by providing information on China’s roadways and creating a high-definition map of the country.
SAIC will therefore join other global Mobileye-OEM partners in collecting road data to enable universal real-time high-definition mapping.
The deployment of Mobileye’s mapping solutions in China is expected to provide other OEM partners with opportunities to enter the region’s autonomous vehicles market with map-related features.
Further, leaders of the Daegu Metropolitan City in South Korea have collaborated with Mobileye to test and deploy robotaxi-based mobility solutions.
The robotaxi will be powered by Mobileye’s autonomous vehicle technology, which will enable a driverless MaaS operation. The deal depicts how Mobileye is quickly scaling its autonomous MaaS ambitions globally.
Intel Corporation Price and Consensus
Boosting Foothold in Self-Driving Space
The news regarding the SAIC and Daegu City agreements came a day after Intel released a video showcasing Mobileye navigating through streets of Jerusalem, with the help of 12 on-board cameras and no sensors. By evading the use of sensors, the demo provided by Mobileye is considered a breakthrough in self-driving vehicles space.
Additionally, Mobileye holds an agreement with RATP in partnership with the city of Paris to bring robotaxis to France. The unit has also collaborated with UniGroup and NIO in China as well as a joint venture with Volkswagen and Champion Motors to operate an autonomous ride-hailing fleet in Israel.
Considering these developments, it is quite clear that Mobileye is determined to fulfill its targets in the autonomous vehicles space.
Mobileye’s sales came in close to $1 billion in 2019. Moreover, it expects the metric to rise double-digits this year. In fact, Mobileye expects the autonomous MaaS total addressable market to reach $160 billion by 2030.
Intel’s moves to bolster presence in the autonomous vehicle market is likely to give tough competition to major players like Alphabet’s (GOOGL - Free Report) Waymo, Qualcomm (QCOM - Free Report) and Nvidia (NVDA - Free Report) .
With strong growth prospects in the autonomous vehicles space, Intel’s efforts to boost presence in this arena are likely to yield in the near term. This is likely to drive the company’s top line.
Intel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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