Intel's Mobileye self-driving unit expected to go public this week: what to know
Jan Hetfleisch

Intel (NASDAQ:INTC) is slated to spin off part of its self-driving Mobileye (MBLY) unit this week in an initial public offering that could value the company at roughly $16B.
And while investors cheered the prospects of the spinoff when it was first announced in late 2021, financial markets and the global economy have taken a sharp turn for the worse in 2022.
The steep decline in tech stocks and worries over a global recession has prompted Intel (INTC) to reportedly cut the valuation of the Israeli-headquartered Mobileye (MBLY) multiple times just to get the deal done.
In December, some analysts speculated that Mobileye (MBLY) was worth $50B, but it now looks closer to being worth $16B. For comparison purposes, Intel bought the company for roughly $15.3B in 2017.
Goldman Sachs and Morgan Stanley are leading the IPO and Mobileye plans to trade on the Nasdaq under the symbol (MBLY).
Intel (INTC) may raise as much as $820M from selling anywhere between 10% and 20% of Mobileye (MBLY) in the offering at $18 to $20 per share, though it will remain Mobileye's (MBLY) majority owner. 
In doing so, Intel (INTC) will continue to shore up its balance sheet as it looks to become a global foundry, competing with the likes of Taiwan Semiconductor (TSM), a move that requires heavy spending.
Earlier this year, Intel (INTC) said it would spend up to $88B in Europe over the next decade as it looks to expand its manufacturing operations on the continent. 
The company is also spending heavily in the U.S., plunking down roughly $20B for its new Ohio plant. Construction on the new Ohio plant started earlier this year. 
According to some investment banks, Intel (INTC) has been seen as one of the largest beneficiaries of the U.S. CHIPS Act, a piece of legislation designed to make the domestic semiconductor industry more competitive with Taiwan's and China's respective semiconductor industries. 
Under Chief Executive Pat Gelsinger, Intel (INTC) is also increasing its focus on its core business lines, making Mobileye (MBLY) something of a distraction for the Santa Clara, California-based chip giant. 
Despite the fact it is no longer a key focus for Intel (INTC), Mobileye (MBLY) has been growing steadily, as it looks to service its client roster across more than 800 different vehicles, including models made by BMW, Volkswagen and others.
For the six months ended July 2, Mobileye (MBLY) posted revenues of $854M, with gross profit of $405M. It generated an operating loss of $36M and a net loss of $67M during the same time frame. 
In its S-1 filing, Mobileye (MBLY) listed a number of competitors, ranging from semiconductor companies such as Ambarella (AMBA), Advanced Micro Devices (AMD) and Nvidia (NVDA), to auto companies including Tesla (TSLA), Google's (GOOG) (GOOGL) Waymo, GM's (GM) Cruise and even Apple (AAPL).