Intel is shutting down its automotive architecture business and cutting most of its team as part of a big company restructuring. The move was confirmed internally to employees Tuesday and later to TechCrunch.
This ends Intel’s push into automated vehicle tech and software-defined vehicles, a sector it invested heavily in since 2015. Intel’s portfolio included a $15.3 billion acquisition of Mobileye in 2017 and the $900 million purchase of Moovit in 2020. Mobileye later spun off as a public company but remains partially owned by Intel.
Intel rolled out an AI-powered system-on-chip for vehicles, targeting production by late 2025. The chip debuted at the Shanghai Auto Show in April, but signs of trouble loomed as new CEO Lip-Bu Tan warned of layoffs due to poor sales and a tough outlook. 
The company declined to provide specific numbers on how many employees will be affected by the auto business closure.
Cory Pforzheimer, Intel spokesperson, said:
“As we have said previously, we are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers,” according to a company statement provided by spokesperson Cory Pforzheimer. “As part of this work, we have decided to wind down the automotive business within our client computing group. We are committed to ensuring a smooth transition for our customers.”
Intel’s automotive exit follows a recent announcement to cut 15%-20% of staff in its Intel Foundry division starting in July. That division handles semiconductor manufacturing for external clients.
The industry will be watching as Intel pulls back from car tech after a decade of heavy bets and shifting priorities.
