Tesla has entered into an agreement with Samsung’s electronic components unit to supply cameras for the brand’s self-driving system.
According to The Korea Economic Daily, the deal with Samsung Electro-Mechanics is estimated at between 4 trillion won and 5 trillion won ($ 3.2 billion- $ 4 billion).
Samsung beat LG Inotech and Primax Electronics to win the deal with Tesla, but this is not the first time that Korean electronics maker has partnered with American automaker to make car components. In September 2021, Samsung was awarded a contract to supply Tesla with the next-generation full self-driving 4.0 chip, and in July it won a $ 436 million contract to supply a camera module for a new model that is rumored to be Cybertruck.
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LG Inotech will still supply 20 percent of the camera for the system, but Samsung will supply most of the 80 percent under the deal. Cameras will be used in each Tesla model called Model S, Model 3, Model X, Model Y and the upcoming Cybertruck.
Cameras are a huge part of Tesla’s technological advancement, using them for a fully self-propelled system to create images for its “neural net” without having to use leaders or radar like other automakers.
Eight cameras with an estimated 1.2 million megapixels are used for the latest version of FSD, and that number could bump up to 5 million megapixels when switching to a Samsung camera, representing a huge increase in image quality.
Despite recent reports that the brand has submitted to the FCC to use a new radar system, investment in Tesla’s plan to achieve self-driving with a camera-only approach seems to have doubled.