Samsung and LG companies are bidding for Tesla's multibillion-dollar camera module orders

On January 20, TechWeb quoted foreign media as saying that the multibillion-dollar camera module order thrown by electric car manufacturer Tesla has attracted the interest of many companies, and they are participating in the bidding, including Samsung and LG companies.

The news was first reported by the South Korean media, which said that LG Innotek and Samsung Motor and a number of other companies are participating in the bidding, and the bidding is expected to be completed in the first quarter.

It is worth noting that LG Innotek and Samsung Motors, which participated in the bidding, were previously the main suppliers of Tesla's vehicle camera modules. In the camera modules purchased by Tesla last year, LG Innotek supplied 60%-70%, and Samsung Motors supplied 30%-40%.

In addition, as early as September 2021, the South Korean Economic Daily said that Samsung beat TSMC to produce an autopilot chip HW4.0 for Tesla. A source said, "Tesla and Samsung's foundry departments have been working on chip designs and samples since the beginning of 2021. In 2021, Tesla decided to outsource the autopilot chip HW4.0 to Samsung. ”

South Korean media also said in the report that Samsung Motor expects to get more orders this year, as Tesla expects to diversify suppliers to reduce prices.

Tesla has thrown out billions of dollars worth of camera module orders, which will be used for their Model S, Model X, Model 3 and Model Y, and the camera orders for Tesla's electric truck Semi and electric pickup Truck Cybertruck, which Tesla has launched but has not yet come into production, have also been thrown.

Judging from the Reports of the South Korean media, the orders thrown by Tesla, including the camera modules planned for this year, are also partly used for electric vehicles produced next year. In addition, electric vehicles usually use 8 sets of camera modules, of which the module located in the front of the vehicle is the most expensive.

It should be pointed out that recently, according to etnews, LG Innotek will provide Tesla with cameras worth more than 1 trillion won, and the supply contract will be completed in the first quarter and mass production will begin. It is understood that LG Innotek's camera will be installed on Tesla's Model Y and Model 3 for the North American and European markets, as well as the upcoming electric truck Semi.

Tesla previously ordered cameras from China and the United States, but due to the impact of the Sino-US trade war, it has shown great concern for South Korean companies. Last year, Tesla signed a 490 billion won camera module supply contract with Samsung Electric.

LG Innotek supplied Tesla for the first time last year, which means it passed Tesla's reliability test, but last year's supply was only tens of billions of won, and once this year's contract is completed, the transaction size will be 10 times that of last year, which will greatly benefit the company's performance. (Proofreading/Andy)