NEW YORK (TheStreet) -- Shares of Mobileye (MBLY) were plummeting, ending the regular trading session down 5.13% to $33.66 on heavy volume Monday, after competing company Freescale Semiconductor (FSL) introduced its new automotive vision system-on-chip, the S32V vision microprocessor.

Freescale's S32V vision microprocessor is the first automotive vision system-on-chip with the reliability, safety and security measures to automate and "co-pilot" a self-aware car.

Freescale also announced plans to merge with NXP Semiconductors (NXPI) - Get Report. The agreement to merge in a transaction would value the combined enterprise at about $40 billion, making it the world's largest automobile semiconductor company, FBR Capital noted.

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Stifel analysts said they believe the potential deal would make NXP a leader in automotive chips and micro-controllers.

Similarly, Nvidia (NVDA) - Get Report announced its own automotive-grade chip in early January.

About 6.63 million shares of Mobileye exchanged hands as of 4:01 p.m. ET today, compared to its average trading volume of about 2.9 million shares a day.

Israel-based Mobileye designs and develops software and related technologies for camera-based advanced driver assistance systems that can perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris or other obstacles.

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