Intel to Buy Mobileye in $15 Billion Deal

The transcript discusses Intel's strategic move to expand into the auto market, highlighting the potential for growth in this sector compared to the more saturated PC and server markets. It explains the challenges of entering the auto market, such as the long design and revenue cycles, and emphasizes the importance of mergers and acquisitions, like Intel's purchase of Mobileye, to gain a foothold. The acquisition is seen as a sound decision, providing Intel with advanced driver assistance systems technology. The transcript also mentions key competitors in the space, such as NXP, Infini, and XD Micro.

Why is the auto industry considered a promising segment for Intel's growth?

• It is similar to the PC market.

• It has a quick design and revenue cycle.

• It is a large, profitable, and growing segment.

• It is a small and niche market.

What is a major challenge in entering the auto market compared to PCs and handsets?

• The auto market is less profitable.

• The technology is outdated.

• Designs and revenue conversion take longer.

• There is no competition in the auto market.

What strategic approach did Intel take to enter the auto market?

• Developing new PC models.

• Mergers and Acquisitions (M&A).

• Focusing on handsets.

• Reducing server production.

What does the acquisition of Mobileye provide Intel in terms of technology?

• Basic car sensors.

• Outdated server technology.

• Traditional PC components.

• Advanced driver assistance systems.

Which companies are mentioned as legacy participants in the auto technology space?

• Google and Amazon.

• NXP, Infineon, and STMicroelectronics.

• Apple and Microsoft.

• Samsung and LG.