Intel's new entity will use proprietary capabilities from Israel-based Mobileye for building these test vehicles.
Intel's acquisition of outstanding ordinary shares of Mobileye NV is now complete, which should soon make some of the goals of the acquisition more clear. Intel believes the vehicle systems, data and services market could be worth north of $70 billion by 2030.
The vehicles are said to incorporate cameras, image-processing capabilities, microprocessors, and mapping technology, as well as a hybrid software system.
The cars Intel plans to launch will come with Level 4 high-driving autonomy - the second highest classification of autonomous cars - and handle most driving situations without falling back for manual driving support. Humans will still be able to pilot the vehicle, but in certain modes it will be entirely hands-off. A vehicle with a SAE Level of 5 is classed as possessing full automation. Intel will run trials of the system under real-world conditions in North America, Europe and Israel, where Mobileye's headquarters are located.
The first of these cars are set to hit the roads later this year in Arizona, where self-driving vehicle testing is popular.
USA auto rental giant Avis Budget Group Inc earlier this year announced it would team up with Waymo LLC on self-driving cars being tested on Arizona roads, while Tesla Inc boasts that all its models are built with the hardware for self-driving in the event regulators give the technology a green light.
It is not yet known which automaker would be building the chipmaker's new self-driving cars. Data collection from the fleet will used for safety validation and for working with regulators on meeting transportation rule requirements.
The acquisition is expected to accelerate innovation for the automotive industry and positions Intel as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles. "Given resident skill-sets within the two companies, a standalone fleet of test vehicles is possible nearly immediately".