Spawning Speculation
Key affiliates of Samsung Group, including Samsung Electronics, Samsung SDI, Samsung SDS and Samsung Electro-Mechanics, have launched a task force focused on electric vehicles (EVs).
The task force is reportedly studying EVs from various angles at Samsung Seocho Building in southern Seoul. "It recently disassembled a Tesla Model Y," said an official of a Samsung company.
Nothing is known about this task force other than the fact that it is studying EVs from diverse angles.
Samsung SDI, Samsung Electro-Mechanics, Samsung Display and other Samsung Group units produce various core components of EVs, such as batteries, autonomous driving chips, vehicle semiconductors, camera modules, and organic light emitting diode (OLED) displays. They are rolling out core products except for power drive systems. So if they have the will, they can start the automobile business at any time. However, it seems unlikely that Samsung Group will advance into the EV business, as it suffered a major failure when it entered the automobile business in the 1990s.
If Samsung enters the EV business, it will have no choice but to compete with its corporate customers. This scenario lowers the possibility of Samsung’s entry into the EV market.
Some analysts think that the task force was assembled to take EV battery and other component orders from Tesla, the global No. 1 electric vehicle maker. Samsung SDI, LG Energy Solution and Panasonic are competing to develop 4680-type batteries. So, Samsung SDI may have taken the initiative to launch the task force. Samsung Electro-Mechanics recently signed a camera module supply contract worth 4 to 5 trillion won with the global electric vehicle giant. Tesla’s passenger cars and trucks such as the Model Y and the Model S will be loaded with 4.0 version camera modules.
Samsung SDI will be able to greatly boost its competitiveness if it supplies mid-to-large cylindrical batteries to Tesla. Compared to 2170-type (21 mm in diameter and 70 mm in height) cylindrical batteries, 4680-type mid-to-large cylindrical batteries have five times more output.