Mobileye has chosen to end the internal development of next-generation frequency modulated continuous wave (FMCW) lidars for use in autonomous and highly automated driving systems.

The company said that it now believes that the availability of next-generation FMCW lidar is less essential to its roadmap for eyes-off systems. This decision was based on a variety of factors, including substantial progress on EyeQ6-based computer vision perception, increased clarity on the performance of internally developed imaging radar, and continued better-than-expected cost reductions in third-party time-of-flight lidar units.

Mobileye said that the action does not impact any customer product programs or product development in general. It also has no bearing on Mobileye’s commitment to development of in-house imaging radar, which is meeting performance specifications based on B-samples and is expected to enter production next year, on schedule.

In terms of Mobileye’s internal sensor development, imaging radar is a strategic priority. This is a core building-block technology that the company expects to drive competitive advantage for Mobileye-based eyes-off systems in cost/performance optimization and scalability.

The lidar R&D unit will be wound down by the end of 2024, affecting about 100 employees. Operating expenses for the lidar R&D unit are expected to total approximately $60 million in 2024 (including approximately $5 million related to share-based compensation expenses). While this action is not expected to have a material impact on Mobileye’s results in 2024, it will result in the avoidance of lidar development spending in the future.