On September 6, Bloomberg quoted people familiar with the matter as reporting that US chip giant Intel may sell or transfer part of its stake in Mobileye, its self-driving technology division, on the open market to a third party.
, Intel is in the midst of heated discussions about its survival.
Intel will carry out a restructuring plan that may include “cutting off” unnecessary business and adjusting capital expenditures, including selling its foundries and several other semiconductor businesses.
Sources familiar with the matter revealed on Thursday that Intel, which holds 88% of Mobileye, is considering selling part of Mobileye’s stake in the process of a comprehensive evaluation.
In addition, Intel is also weighing its network and edge business options.
Later in September, Mobileye will hold a board meeting in New York, USA, to discuss Intel’s potential plans.
, Intel’s share price rose slightly more than 0.
2% after hours on Thursday.
During normal trading hours, the stock closed down 0.
15% to US$19.
40 per share.
Founded in 1999, Mobileye provides autonomous driving system software.
The Jerusalem-based company went public in the United States in 2002.
, Intel sold part of Mobileye’s stake last year, raising approximately $1.
5 billion.
The main reason for Intel’s sale was to raise funds.
CEO Pat Gelsinger tried to lead Intel back to glory, hoping to compete with TSMC and Samsung Electronics by building new fab and improving process technology.
However, Intel’s continued sale of Mobileye comes at a bad time.
The stock has fallen about 71% year-to-date and has a market value of about US$10.
2 billion, and the company is expected to lose money for the third consecutive year.
, Mobileye fell about 2% after hours on Thursday.
During normal trading, the stock plunged more than 7% to $12.
62 per share.
, As of press time, a Mobileye spokesperson declined to comment.
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