Mobileye, an Intel subsidiary specializing in automotive technologies, has discontinued its internal development of next-gen frequency-modulated continuous wave (FMCW) LiDARs for autonomous and advanced driver assistance systems (ADAS). The company plans to wind down its LiDAR R&D unit by the end of 2024, affecting approximately 100 employees.

The decision was based on several factors, including progress on the company's EyeQ6-based computer vision perception, improved internally developed imaging radar performance, and continued cost reductions in third-party time-of-flight LiDAR units. The company also stated that the availability of next-generation FMCW LiDAR is now considered less essential to its roadmap for automated driving systems.

This move is not expected to impact Mobileye's 2024 results significantly. Mobileye also claims that ending internal LiDAR development will save future costs by avoiding LiDAR development spending.

Analyst QuickTake: Although autonomous vehicles and ADAS are considered promising growth areas for LiDAR, since these technologies are still in development, they may not generate much revenue for LiDAR companies in the near term. Incumbents like Mobileye and LiDAR startups such as Luminar and Innoviz Technologies were also seen cutting their workforces to restructure operations for better financial positions.