Tesla's biggest camera supplier is now Samsung, overtaking LG Innotek with new deal

Samsung is reportedly becoming Tesla's biggest supplier of camera modules for its cars, following a recent multi-billion-dollar deal between the two companies. So far, LG Innotek was supplying around 70% of the camera modules Tesla needed, with Samsung covering the other 30%.

Now though, Samsung beat its rivals including LG Innotek and Taiwan's Primax Electronics, to clinch the new deal estimated at between 4 and 5 trillion Korean won ($3.2-4 billion). The information isn't official yet, but it comes from "people familiar with the matter" in Korea.

The deal is apparently the biggest ever for Samsung Electro-Mechanics, the electronic components unit of the Samsung group, and now makes it the largest supplier of camera modules for Tesla, with about 80% of the orders surpassing LG Innotek which is now down to 20%.

Over the next five years, Samsung cameras will be installed in the Tesla Model 3, Model S, Model X, Model Y, as well as the upcoming Cybertruck and Semi, according to the same sources. The cameras in question have 5 MP sensors, which apparently produce images "five times clearer" than its previous generation. Mass production for the new sensors destined to be installed in Tesla EVs is due to start next month.

According to industry sources, an EV usually carries 7 to 8 camera modules these days, up from just two only two years ago, while more advanced cars can go up to 12 modules. Thus, vehicle camera module shipments are expected to rise to 230 million units globally this year, up 35% from last year, and will continue to grow at an average annual rate of 30% until at least 2025.

Source | Via