Home Tech Tesla and Samsung could be on the verge of reaching a historic agreement

Tesla and Samsung could be on the verge of reaching a historic agreement

Tesla and Samsung could be on the verge of reaching a historic agreement


Samsung would have become Tesla’s new strategic ally to build the technology for its autonomous cars.

Tesla and Samsung could be on the verge of reaching a historic agreement
Interior of a Tesla brand car

tesla wants to become the reference company in the field of autonomous vehicles. AND samsung wants to be part of that feat. For this reason, the South Korean company would have offered itself to the automobile firm led by Elon Musk to be the company in charge of manufacturing the hardware that will give life to the Tesla Hardware 5 autonomous driving system.

This has been indicated since news portal KED Globalwhere they claim that Tesla would have already welcomed Samsung as chip supplier that will be included in the brand’s vehicles three to five years from now.

Samsung made Tesla an “irrejectable offer”

Samsung and Tesla executives

Several Samsung and Tesla executives, including Elon Musk and Lee Jae-yong

Although everything seemed to indicate that TSMC would be, one more year, in charge of producing the chips that will give life to Tesla Hardware 5.0, industry sources indicate that the American company would have decided split production between the two companies, Samsung and TSMC.

The details of the agreement between Samsung and Apple are not known, but the same sources suggest that Lee Jae-yong’s visitCEO of Samsung, to the Tesla headquarters that occurred during the past month of May, was key in Elon Musk’s decision. During his visit, Lee Jae-yong reportedly made Musk an “irresistible offer” to make Samsung one of his chip suppliers.

This is not the first time Samsung has worked with Tesla. Previously, the South Korean company had already provided chips for some of Tesla’s current models, including the Model 3, Model Y, Model S and Model X. However, last year it was decided to go with TSMC, since it was believed that the South Korean technology was not that advanced.

However, semiconductor industry analysts say that Samsung has significantly improved the performance and production efficiency of its chipsand today it is almost on a par with TSMC in both aspects.

That Samsung does not want to be left out of the autonomous vehicle market is not surprising. Several analyzes suggest that the world market for chips aimed at this type of vehicle will reach 143,000 million dollars by the year 2029, a significant growth compared to the 76,000 million estimated for this year 2023. In view of its collaboration with Tesla (and with other manufacturers), Samsung intends to increase its production capacity until it reaches to triple it by the year 2027relying on both the main plant in Korea and its new plant located in the state of Texas, where it will begin to operate at the end of next year 2024.


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