Intel Shuts Down Its Automotive Division: A Decade of Effort, Gone Overnight

At this year’s Auto Shanghai, Intel unveiled its next-gen AI-enhanced SoC for smart vehicles and brought top executives to the stage, signaling a strong commitment to the automotive sector.

But just two months later, the tech giant made a sharp turn—announcing the shutdown of its automotive division, laying off most staff, and shifting its focus to more profitable areas.

A Sudden End to a Long Journey

Intel has been involved in automotive electronics since 1976. The company made headlines in 2017 by acquiring Mobileye for $15 billion and later buying Israeli mobility platform Moovit. Despite these moves, Intel struggled to gain traction in the competitive smart vehicle space.

In 2023, Intel relocated its automotive business headquarters to Beijing, led by VP Jack Weast, who spearheaded the company’s software-defined vehicle (SDV) strategy and AI-enhanced in-car chips. He even moved his family to China, aiming to gain ground through localization.

However, with the arrival of new CEO Lip-Bu Tan, Intel entered a phase of aggressive restructuring. The automotive unit became a prime target for cost reduction.

More Than Just Cars

Intel's automotive retreat reflects broader challenges. The company missed the mobile revolution, failed to keep up with TSMC in chip fabrication, and saw its 2024 stock value plummet by 60%. Layoffs swept across global offices, totaling 16,000 employees.

Former CEO Pat Gelsinger had championed a return to leadership through manufacturing, but Tan’s more pragmatic approach prioritizes profit. Without clear ROI, the auto segment was cut loose.

Mobileye: Intel’s Last Automotive Card

As of now, Mobileye remains Intel’s sole automotive asset. The company continues to lead in autonomous driving technologies and may still serve as Intel’s last play in the intelligent mobility arena.

Categories: vehicles