Article report on Israel

Radu Micuda

MICR28109202

                Israel might be a big player on the autonomous-car market

This article from The Economist introduces the subject, the acquisition of Mobileye, an Israeli company specialised in autonomous-car technology, by the American giant Intel for 15.3 billion dollars, although it is also mentioned that Israel is not a country known for its cars but more for its advanced technology. To explain this sale, the author begins by first explaining why Mobileye is an interesting purchase, then, he talks about Intel’s motivation behind and he concludes by mentioning that this deal also needs a carmaker, BMW.

First, Mobileye, according to this article, has a very useful asset for the future of cars in its EyeQ software, which is already used by most of the carmakers in the world to keep their car in lane and to activate emergency breaks. Close to its end, the article mentions a very tense competition so it will be interesting to follow if EyeQ will remains available for other carmakers. The particularity it has to other camera based devices is that it can update its huge database of maps and information with captured live information. Also, there is mention of Israeli official being glad that Intel will relocate its car related industry in the country, creating interesting jobs perspectives.

Second, to explain Intel’s interest in Mobileye, the author states that other giants in the technology domain recently invested in the future of cars, such as Google, Qualcomm and Nvidia, all of them acquired some sort of driving-navigation company in the last year, for sums that range from 1.1bn$ to 47bn$. Considering its competitors are aiming for cars, it is logic that Intel goes in the same direction, since the chip market peak is behind. Intel is under pressure to find new fields of activity with the slippery slope that is the chip market and its past failure with McAfee is not helping. The author even suggest that due to the pressure, the acquisition of Mobileye could have been overpriced. To conclude this section, the authors says that what those company are looking for in their acquisition is the precious data, which shall from now on be well guarded from competition, point mentioned previously.

In conclusion, the author talked about both companies and how Intel can make the best out of it to maybe distinguish itself for dominance of the cars of the future. On an opening note, he also mentions that a company with autonomous-cars technology also need a carmaker and that BMW is the partner.

Q1 : Why is Intel trying to get on the autonomous-car industry?

Q2 : What can Mobileye provide to the autonomous-car?

Mobileye and Intel join forces

An Israeli firm and a tech giant team up to shape the future of cars

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 From the print edition | Business

Mar 16th 2017| JERUSALEM

CARMAKING in Israel has amounted to little more than some unstylish models put together in the latter half of the last century and a few rugged off-roaders still assembled for the country’s security forces. A reluctance to make them, however, has not stopped Israel from becoming a thriving centre for the high-tech kit with which cars now bristle, and also for mobility services such as ride-hailing.

The latest evidence of Israel’s pre-eminence in the field came on March 13th, when Intel, a giant American chipmaker, paid $15.3bn for Mobileye, a Jerusalem-based firm that is at the forefront of autonomous-car technology. With the acquisition, Intel joins the ranks of technology companies that are trying to outmanoeuvre carmakers and auto-parts suppliers to develop the brains of vehicles of the future.

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