Update: A spokesperson for LG Innotek has confirmed that LG Innotek did not participate in the Tesla tender, therefore, Samsung Electro-Mechanics did not outbid it to win the contract.
The supply of components is a big business for the Samsung Group. Even though Samsung has decided it's not going to make electric cars of its own, the company supplies crucial components to the EV industry including batteries and camera modules.
Camera modules have become essential as car manufacturers push for higher levels of autonomous driving. Tesla is leading the charge with its vehicles. The company was looking to source camera modules for its electric Cybertruck and Semi vehicles. A new report indicates that Samsung Electro-Mechanics has defeated LG Innotek to win the entire order.
This is a major contract for Samsung Electro-Mechanics
With Samsung Electro-Mechanics beating LG Innotek's bid, it's now expected to supply all of the camera modules that will be used in the Tesla Semi and Cybertruck vehicles. Tesla has already announced these EVs and it's now looking to ramp up production as it seeks to deliver the vehicles to customers in the coming years.
Samsung Electro-Mechanics had a fair bit of competition since Taiwanese companies were also in the running for this major contract. This is the second time that Samsung has outbid the competition as Tesla's camera module orders for the Cybertruck all went to Samsung Electro-Mechanics last year as well. The company will be supplying these components to Tesla's gigafactories in Shanghai and Berlin.
Samsung Electro-Mechanics is also in the business of supplying camera modules for smartphones but the products for EVs are of higher value, thus enabling the company to increase its profits. There are eight camera modules in a Tesla EV. These economies of scale work well in Samsung's favor.
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