Intel chip won the Audi new A8 into the self-driving semiconductor market
With the global PC market showing a downward trend in recent years, Intel's revenue from PC chips has also faced challenges. In response, the company is actively expanding into emerging markets outside of traditional PCs. Recently, Intel announced on its official website that its processors will be integrated into the semi-autonomous driving system of Audi’s 2018 A8 model. This marks Intel's official entry into the rapidly growing self-driving semiconductor market, even though it's still a small player in this space. However, with this partnership, Intel hopes to unlock new business opportunities and establish a stronger foothold in the future.
According to MotleyFool, Intel made a significant move in 2017 by acquiring Mobileye, a leader in semi-autonomous driving technology. Now, for the first time, Intel's chip technology is being used in real-world autonomous vehicles. This signals Intel's serious commitment to the self-driving industry, especially as the global market is projected to reach $77 billion annually by 2035. For Intel, this represents another potential growth area as the PC market becomes increasingly saturated.
Intel explained that the processors embedded in the 2018 Audi A8 will come from its Programmable Solutions Group (PSG) and its subsidiary Wind River. The PSG division is expected to become a major revenue driver in the future. In 2016, PSG contributed just 3% of Intel's total revenue, which amounted to around $1.67 billion out of $59.4 billion overall. This shows how much room there is for growth in this segment.
Although Intel has taken a strong initial step into the self-driving semiconductor market, the road ahead is long and competitive. Major players like NVIDIA have already made substantial investments in this space. For example, Audi also uses NVIDIA’s DrivePX2 platform in the A8, and Tesla’s Autopilot system relies heavily on NVIDIA technology. These partnerships pose challenges for Intel, as they must not only innovate but also convince automakers to choose their technology over established competitors.
If Intel’s self-driving chips fail to gain traction with car manufacturers or other key players, it may struggle to break into the broader market. Therefore, strengthening its self-driving technology will be crucial for Intel to remain competitive. Whether it can secure more partnerships beyond Audi will determine its long-term success in this sector.
A recent report from StrategyAnalytics highlights that the self-driving industry could create a $7 trillion passenger economy, including ride-sharing, car rentals, and other emerging services. Intel believes that the transportation industry is on the brink of a major transformation, and it aims to play a central role in shaping this future.
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