Intel Courts Auto Industry as Battle Brews to Provide Autonomous Car Computing Power

By Tim Higgins 

Intel Chief Executive Officer Brian Krzanich on Tuesday arrived at his first car show as a speaker to deliver the message that his company's computing muscle and big-data prowess are just what auto makers need as they prepare for a world of vehicles that can drive themselves.

During his speech at Los Angeles' annual car show, he plans to announce a $250 million commitment by Intel Capital to invest in autonomous car technology during the next two years.

Mr. Krzanich, who oversees the Silicon Valley semiconductor giant, faces increased competition as chip companies position themselves to provide the computing power for what quickly are becoming data centers on wheels. Rival Qualcomm Inc., the dominant vendor of smartphone chips, agreed to acquire the Dutch automotive chip leader NXP Semiconductors NV for $39 billion, while Nvidia Corp. provides chips for the latest generation of electric cars from Tesla Motors Inc.

"We see the world of cars shifting from something that uses computers to enhance the drive to something that uses compute to really power the drive," Mr. Krzanich said in an interview before his speech. "More and more, it's going to be that compute capability that's going to drive a lot of the differentiation of the car of the future."

Intel's automotive business, which is involved in 30 vehicle programs on the road currently, is slated to increase that number to 49 by 2020 with orders worth $1 billion, the company said. Intel doesn't break out its automotive business in its financial results. Several auto makers including Ford Motor Co. and BMW AG are targeting 2021 to build self-driving vehicles.

Write to Tim Higgins at [e-mail]

(END) Dow Jones Newswires

November 15, 2016 13:16 ET (18:16 GMT)

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