Intel stock rose 7.6 % in premarket trade on Tuesday as the company announced plans to go public with its self-driving vehicle unit Mobileye .

According to a Wall Street Journal report published on Tuesday, Intel intends to launch an initial public offering for Mobileye stock in mid-2022.

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According to a statement from Intel, the chipmaker will retain controlling ownership of Mobileye and the two businesses will continue to be strategic partners.

Activist investors such as Third Point have pressed Intel CEO Pat Gelsinger to consider spinning off its costly chip manufacturing operations, even as the company has committed billions of dollars to advanced chip manufacturing capacity in the United States and Europe to address a global semiconductor shortage.

It is putting $20 billion into two chip-making plants in Arizona.

Intel has lost ground in recent years, particularly in the mobile and server areas, after dominating the semiconductor business in desktops and laptops until the early 2000s. It lost ground to AMD in PCs, Nvidia in games and servers, and Qualcomm in mobile.

Expansion into self-driving mobility is one approach to compensate for such losses.

In 2017, Intel paid more than $15 billion for Mobileye in order to compete with rivals such as Nvidia and Qualcomm, which see autonomous systems as the next significant cash stream for their chips.