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Semiconductor manufacturing major Intel is selling a minority stake in its Israel-based autonomous driving unit Mobileye Global.

The sale is expected to bring Intel about $1.5bn.

In an announcement, Mobileye said Intel’s wholly-owned subsidiary Intel Overseas Funding Corporation is selling 35 million shares of its Class A common stock.

As part of the secondary public offering, underwriters will also have an option to buy an additional 5.25 million shares of Mobileye’s Class A common stock.

Mobileye stated that it is “not selling any shares of Class A common stock in the offering and will not receive any proceeds from the sale of the shares being offered by the selling stockholder.”

Intel bought Mobileye in 2018 in a deal valued at $15.3bn and following the secondary share sale, the US chip company will control about 88% stake in the company, according to Bloomberg.

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By GlobalData

Last October, Mobileye was listed on the Nasdaq stock exchange following an $861m initial public offering.

The share sale by Intel comes as the chip manufacturer faces intense competition from rivals.

To reclaim market share, Intel CEO Pat Gelsinger has launched a plan, which includes building new fabrication facilities and quickly enhancing its manufacturing technology.

In April this year, Intel Foundry Services (IFS) formed an alliance with semiconductor design company Arm. The alliance will allow Arm to build low-power compute system-on-chips (SoCs) on the Intel 18A process.