A Contract Valued at KRW4-5tn

Samsung Electro-Mechanics will supply camera modules worth 4 to 5 trillion won to U.S. electric vehicle giant Tesla.

Samsung Electro-Mechanics has recently signed a camera module supply contract worth 4 to 5 trillion won with U.S. electric vehicle giant Tesla.

The company's camera modules will be used for Tesla’s Model S (sedan), Model 3 (sedan), Model X (SUV) and Model Y (SUV), which will all be released this year, as well as the Semi (electric truck) and the Cybertruck (pickup truck), which will be released next year.

Samsung Electro-Mechanics is known to supply camera modules to Tesla’s factories in Shanghai and Berlin.

The company will supply version 4.0 camera modules with 5 million pixels, which show five times clearer images than version 3.0 products. Samsung Electro-Mechanics plans to start mass-production of version 4.0 camera modules from next month. The company also supplied a large amount of camera modules to Tesla in July last year.

Samsung Electro-Mechanics is a latecomer in the automotive camera module market. It entered the market in 2010, much later than its rivals, including LG Innotek. Thus far, Samsung Electro-Mechanics and LG Innotek have accounted for 30 percent and 70 percent of the camera modules used for Tesla’s electric vehicles. But this contract turned the tide, with Samsung Electro-Mechanics accounting for 80 percent and LG Innotek the remaining 20 percent. This marked the first time that Samsung Electro-Mechanics surpasses LG Innotek in the supply of camera modules for electric vehicles.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution