Intel's Automotive Gambit: New AI Chips to Power Future Cars, Taking On Nvidia and Qualcomm

Intel Corp INTC announced a significant expansion into the automotive market at the CES event, aligning with its AI everywhere strategy. 

This includes acquiring Silicon Mobility, a company specializing in System-on-Chips (SoCs) for energy management for electric vehicles (EVs).

SoCs mark Intel's move into the automotive sector by introducing a new family of AI-enhanced software-defined vehicles. 

The first OEM to adopt this new SoC is Zeekr, which will utilize it to deliver generative AI-driven living room experiences in next-generation cars.

Also Read: Semiconductor Supply In Automotive Industry Has Caught Up With Demand, AMD and Nvidia Set for Prominent AI and Automotive Role: Analyst

Intel's venture into the EV market includes a commitment to deliver the industry's first open Universal Chiplet Interconnect Express (UCIe)-based chiplet platform for software-defined vehicles (SDVs). 

The company is collaborating with imec to ensure that the packaging technologies meet automotive industry standards. 

Intel's SoCs are already a part of more than 50 million vehicles, powering various functions like infotainment and digital instrument clusters. 

In the automotive semiconductor market, Intel faces stiff competition from Nvidia Corp NVDA and Qualcomm Inc QCOM. 

During a conference call at the CES technology show in Las Vegas, Intel's automotive business chief, Jack Weast, acknowledged Intel's shortcomings in highlighting its automotive successes. 

Intel aims to differentiate itself by providing chips that can be used across various automotive segments, from economy to luxury models, focusing on scalability and cost-effectiveness, contrasting Nvidia's high-powered, high-cost solutions, Reuters reports.

Companies like Zeekr utilize technology from both Intel and Nvidia to advance their infotainment systems and automated driving features.

Intel plans to adopt an "agnostic" approach, allowing automakers to choose their preferred technology for automated driving and other functionalities. 

This strategy includes not mandating the use of chips designed by Intel's former Mobileye unit. 

Instead, Intel allows automakers to integrate their chiplets with Intel's systems, aiming for cost-effective solutions tailored to specific vehicle functions.
 

Intel stock gained over 63% last year versus the broader sector index Invesco QQQ Trust, Series 1 QQQ at 49%.

Price Action: INTC shares are trading higher by 0.27% at $48.18 premarket on the last check Wednesday.

Also Read: Intel Sharpens Focus on AI and Data Centers, Aims to Rival Nvidia

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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