Intel’s (INTC) $15.3 billion purchase of Mobileye (MBLY) serves as just one of many indicators that last year’s flurry of consolidation will likely continue this year. The deal also shows that more and more chip companies are diversifying beyond the legacy PC business and toward the rapidly developing autonomous car market — an area where semiconductors have become a vital commodity in automakers’ efforts to develop such technologies.
“The automotive industry and the tech industry are converging at a rapid pace,” said Needham analyst Rajvindra Gill. “So you have auto companies like General Motors (GM) who are buying technology assets to support autonomous driving and, at the same time, you have semiconductor companies that have the hardware and processors but are buying software companies to become the primary channel for automakers.”
Is this situation an example big corporations gobbling up the little guys to corner the market? Or is this just business being done the way business is done? Tell us what you think in the comments below.