Samsung Electro-Mechanics Co., the electronic components division of the Samsung Group, has won a multi-billion dollar deal to supply camera modules to Tesla for its electric vehicles. The South Korean company will supply camera modules version 4.0 with 5 million pixels.
Samsung Electro-Mechanics Co. defeated other bidders and secured a 4 trillion to 5 trillion won ($3.2 billion to $4 billion) deal with Tesla, sources familiar with the matter said to the Korea Economic Daily said. This will be the South Korean company's largest contract ever, and it will become Tesla's largest supplier of camera modules.
Over the next few weeks, Samsung will begin shipping its latest camera modules for Models S, 3, X and Y. They will also be installed on the Tesla Semi and Cybertruck, which should hit the market soon. These will be Samsung Camera Modules version 4.0 with 5 million pixels, which provide five times sharper images than previous version 3.0 modules. Production of the component will begin next month, the source said.
Samsung Electro-Mechanics is already a key supplier of camera modules for Tesla but lags behind LG Innotek in terms of volume. Until last year, up to 70% of Tesla's camera modules were supplied by LG Innotek, and the remaining 30% by Samsung. However, the new deal will play a significant role in rebalancing. Now Samsung will account for almost 80%, while LG takes over the remaining 20%.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.