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Mobileye: What a progress in 10 years - Automotive has still a great future
Monday, 20 March 2017

It is routine to see big financial deals in the high tech industry, but they're not so often in the automotive industry. But now look: two giant deals in under a month: Qualcomm announced they would acquire NXP, and now Intel want to swallow Mobileye before the end of this year—both deals with giant amounts of money involved. This demonstrates to me that the automotive industry has a great future. ADAS and AVs will not only change the automotive world but also our entire environment, and lighting is included in the challenge.

Mobileye, I visited years ago—just after I left Valeo. I was convinced of their exceptional innovative potential. I took the opportunity to interview professor Shashua, the chairman of the board. At that time, it was a very small company with meagre facilities and fewer than 200 people. But professor Shushua's thoughtful answers showed a great vision in ADAS and also additional possibilities for lighting.
Fast forward: last week I visited them again, and this time I discovered a six-storey building with high-tech facilities and great growth ambitions—and that was before the announcement of the Intel-Mobileye deal!

So what do I retain from these two visits in 10 years? The automotive industry has a great future, as does exterior lighting, provided technical innovations integrate the next level of connectivity, mobility, and autonomous driving to support future transportation solutions. Lighting must learn to "surf" on the digitalisation and AI wave in order to continue to be stronger and renew the customers experience.

That's why we, DVN, launched our study to be published in May :"Impact of a changing Car Industry on Exterior Lighting: evolution or revolution? - Identify your success factors for the next decade"
Don't forget, Shanghai DVN Workshop is coming up next month. By now you've received your flyer in English and Chinese; if you need a fresh copy, grab it from the website. See you there!

Sincerely yours

DVN President

 

In depth...

Intel's Mobileye Buy: Big Change to Value Chain
Monday, 20 March 2017

Intel—heretofore not a major automotive supplier—have put in an offer to buy Mobileye for about USD $15bn Mobileye. The deal will catapult Intel into position to compete with № 1 Qualcomm for market share in computer processing for ADAS and AVs—Qualcomm's top-dog status itself being the result of their $47bn purchase last year of NXP Semiconductors. The deal also puts Intel into direct competition with chipmaker Nvidia to provide vehicle brainpower.

Mobileye commands about 70% of the global market for driver assist systems, so "This is a logical purchase for Intel," says Mike Ramsey, an analyst with Gartner Research. "It's a good way to get a strong foothold with a company that—even if it's not big—has a very big backlog and a nice profit margin."

Intel and Mobileye already have been coöperating on multiple self-driving technology projects. The fruits of one such collaboration will roll onto the roads this year in the form of a fleet of 40 self-driving BMW 7-Series sedans. Mobileye software will analyse sensor data to spot possible obstacles, and an Intel chip will decide if, how, and when the vehicles should steer, accelerate or brake.

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