Intel Corp will keep most of the money it raises next year when it sells a stake in its Mobileye self-driving-vehicle components unit in a planned initial public offering, targeting some of those funds to build more Intel chip plants, Chief Executive Pat Gelsinger said.
Intel shares were up 4.1% at midday Tuesday after surging as much as 8% during the session, as Wall Street cheered the chip giant’s move to take Mobileye public.
Gelsinger said the IPO will allow Mobileye to grow more easily as global carmakers spend billions of dollars to accelerate their transition to electric and self-driving vehicles.
Gelsinger said Intel will retain a majority stake in Mobileye and will also receive “the majority of the proceeds” from the IPO.
Intel has said it plans to build two chip plants in Arizona, and add other plants in the United States and Europe at sites that have not been announced.