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

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 estimated to be approximately $60M in 2024.

This decision to end internal lidar development was based on various factors, including substantial progress on the company's EyeQ6-based computer vision perception, increased clarity on the performance of its internally developed imaging radar, and continued better-than-expected cost reductions in third-party time-of-flight lidar units.

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.

"As part of our regular review of the long-term technology roadmap, we now believe that the availability of next-generation FMCW lidar is less essential to our roadmap for eyes-off systems," the company said in a statement.

In 2022, Mobileye listed as an independent company separate from Intel (NASDAQ:INTC), which retains majority ownership. Intel owns an 88% stake in Mobileye, but is apparently considering selling more of its stake via the public market or to a third party, Bloomberg reported last week.