Samsung, LG units bid for Tesla's multi-billion dollar camera module order

On January 20, TechWeb quoted foreign media reports that the multi-billion dollar camera module order thrown out by electric car manufacturer Tesla has attracted the interest of many companies, which are participating in the bidding, including companies under Samsung and LG.

The report said that the news was first reported by South Korean media, who stated in the report that LG Innotek, Samsung Electro-Mechanics and several other companies are participating in the bidding, which is expected to be completed in the first quarter.

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

In addition, as early as September 2021, the Korea Economic Daily reported that Samsung beat TSMC to produce the autonomous driving chip HW4.0 for Tesla. A source said, "Tesla and Samsung's foundry departments have been studying chip designs and samples since the beginning of 2021. In 2021, Tesla decided to outsource the autonomous driving chip HW4.0 to Samsung."

South Korean media also reported that Samsung Electro-Mechanics is expected to receive more orders this year as Tesla is expected to diversify its suppliers to lower prices.

Tesla has placed orders for camera modules worth billions of dollars, which will be used in its Model S, Model X, Model 3 and Model Y. Tesla has also placed orders for cameras for its electric truck Semi and electric pickup Cybertruck, which have been launched but not yet put into production.

According to reports from Korean media, Tesla's orders include camera modules planned for this year, and some will be used in electric vehicles produced next year. In addition, electric vehicles usually use 8 sets of camera modules, of which the modules located at the front of the vehicle are 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 cameras 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 interest in Korean companies. Last year, Tesla signed a 490 billion won camera module supply contract with Samsung Electro-Mechanics.

LG Innotek supplied Tesla for the first time last year, which means it has passed Tesla's reliability test. However, the supply volume last year was only tens of billions of won. 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.