Sept 9 (Reuters) - Self-driving tech firm Mobileye

said on Monday it will stop the development of a type

of sensor technology that helps detect objects and their

distance as the Israeli company streamlines operations amid an

uncertain demand environment.

The decision to end the internal development of

next-generation frequency modulated continuous wave (FMCW)

lidars will not impact any customer product programs or product

development in general, according to Mobileye.

The company will wind down the R&D unit that works on light

detection and ranging, or lidar, by the end of 2024, affecting

about 100 employees. Mobileye employed a total of 3,700 people

globally as of Dec. 30, 2023.

Operating expenses for the lidar R&D unit are expected to be

about $60 million in 2024, the company said.

"This decision was based on a variety of factors, including

substantial progress on our EyeQ6-based computer vision

perception, increased clarity on the performance of our

internally developed imaging radar," according to Mobileye.

Continued better-than-expected cost reductions in

third-party time-of-flight lidar units also contributed to the

decision to shutter internal FMCW lidar development, the company

added.

Closing of the unit is not expected to have a material

impact on the company's results in 2024, Mobileye said. The

company cut its annual revenue and profit forecasts last month,

slammed by volatile demand for its driver-assistance chips in

China.

In March, the company said it would shut its aftermarket

solutions unit that provides retrofitted advanced driver

assistance technology, affecting about 130 employees.

Mobileye will continue to develop its in-house imaging

radar, which is on schedule to enter production next year, the

company added.

Last week, Bloomberg News reported that chipmaker Intel ( INTC )

was looking to sell a part of its stake in Mobileye.