You may have heard about the new partnership between Tesla and Samsung, but did you know that it changes everything? Here’s why…
What Tesla/Samsung Deal Means
Tesla has been a leader in the electric vehicle market for quite some time now. It’s widely popular for its up-to-date product updates and making the customer the king as Tesla meets their consumer demands with every technological update. Think for yourself would you have imagined that we would have self-driving electric cars back in 2010 or that we could even think of touring and settling on the planet mars back then? It all seemed like a part of science fiction. Didn’t it? But look at what Musk has achieved with his companies leading the technological bandwagon, whether it’s Tesla, SpaceX, or Neuralink.
Thus, it’s not surprising if Tesla continues to lead the EV markets for years to come, however lately, Tesla has been undergoing a lot of changes in its existing presence and reaches think of partnerships with other legacy brands and much more this is something you may not have heard about in the tech channels too frequently, so let’s dive into exploring the unspoken partnership of Tesla with brands that will change Tesla’s already an advanced line of offerings insanely, let’s start with something that you may have already come across regarding the Samsung Tesla partnership is by now a well, the fact that the globally famous south Korean company has collaborated with perhaps the world’s fastest emerging automobile manufacturer in a mutually beneficial partnership.
What Samsung/Tesla Deal Means For Consumers
This is because Tesla is now driving its focus on autonomously driven vehicles laying great emphasis on providing them a fully operational one that’s why they’ve signed a deal with Samsung to work jointly on the production of a 5-nanometer semiconductor the first question that you have in this regard is what are the benefits of this deal to Tesla now this semiconductor will be used for a variety of functions for, For example, it would be utilized for in-vehicle infotainment or its master control systems it would be manufactured by employing the extreme ultraviolet the process do you find this partnership surprising well.
Let’s look at the timeline of Tesla’s previous associations with Samsung; the first collaboration is not that old if you look at it Samsung and Tesla partnered for the first time in 2016 for developing a 14-nanometer semiconductor, and they successfully managed to create one that makes this deal different from the previous one is the usage of argon fluoride process in the 2016 version while the current relies on the extreme ultraviolet process when the semiconductor chips are concerned Samsung has handled the situation very smartly during the
introduction of the five-nanometer semiconductor they introduced it solely for mobile phones, particularly the Exynos 2100. Still, soon something happened which provided the perfect opportunity for Samsung to capitalize on the global chip shortage of 2020.
How Tesla/Samsung Deal Will Affect Electric Vehicle Industry
Let’s give you a gist of what exactly played out if you’re not familiar with this event due to the fluctuating consumption patterns during the pandemic. The supply chains experienced disruption during various points of time the semiconductor chip the supply chain was not safe from these disorders since 2020. There’s been a global semiconductor chip shortage as these chips are practically used in nearly every device we use. Due to this, there has been a significant production cut back in the automobile industry as they could not continue the manufacturing process without adequate semiconductor supply. Global carmakers
like ford, Toyota, Nissan VW, and Fiat Chrysler automobiles had to scale back their output because of this guess what Samsung did they saw this opportunity to enter the market to develop semiconductor chips for electric vehicles as well Tesla has found a way to survive the semiconductor shortage to stay as the market leader in manufacturing electric cars.
During Tesla’s first-quarter 2021 earnings call, their CEO musk delineated the issue of the supply chain disruption and even compared it with the situation during world war ii he said this quarter, and I think we’ll continue to see that a little bit in the second quarter and third quarter has some of the most challenging supply chains challenges that we’ve ever experienced in the life of Tesla and the same difficulties with supply chain with parts over the whole range of features people have heard about the chip shortage; however, interestingly Tesla is a dynamic company that manages to find the solution to technological problems and ace the race of developments explained that they aren’t expecting to be too affected by the chip shortage as compared to other automobile companies they wrote in their shareholder’s letter in q1 we were able to navigate through global chip supply shortage issues in part by pivoting exceptionally quickly to new microcontrollers while simultaneously developing firmware for new chips made by unique suppliers.
While you must have guessed it by now, the new suppliers are none other than Samsung, which makes semiconductor chips based in South Korea. Samsung has also supplied Tesla with other EV-related technologies, such as batteries. Reports even indicate that the new pixel-led headlamp developed by Samsung will also be used by Tesla for its future EV. Another rumor making the rounds is that Tesla is planning to outsource materials such as batteries and cameras from Samsung to develop the Tesla model Pi.
Samsung’s tech quality, whether we talk about its cameras or battery, would indeed help in realizing the dreamy features of the model pi it is, however not confirmed yet as Tesla still hasn’t demonstrated the actual characteristics of their awaited phone model now that you have an
understanding of their primary semiconductor deal, let’s speak about
another area of collaboration for Samsung and Tesla has only recently initiated a bidding program to give out orders for camera modules in their EV as per what reports suggest various big names in this field such as LG Innotek and Samsung electromechanics are currently competing to win this bid one thing you may be interested to know is that now, LG Innotek is already one of the enormous camera suppliers for Tesla
As it had earlier secured a 1 trillion won 840 million dollar contract with Tesla to manufacture cameras for its model 3 and model y as Tesla aims to increase its production and delivery capacity in 2022, it has to acquire a more significant number of cameras in a short period in case you’re interested the electric car models in the bidding process for which the camera modules have to be sourced are tesla model s sedan model x SUV model 3 sedan model y crossover and yet to be released vehicles such as the Cybertruck and the tesla semi, but you may be wondering how is it even suitable for anybody well let’s talk about the scale of the deal for this reason to give you the gist of the quantity in the question we have some statistics in place a single electric vehicle uses at least eight camera modules considering that the bidding is for this year and the upcoming year’s production volume Samsung electromechanics could receive a substantial order worth billions of dollars as until last year, Samsung occupied only 30 to 40 of camera modules supply for Tesla.
Experts predict that Samsung could see its share increase to 50 depending on the bidding process results. This is not the first time that Tesla would use Samsung’s camera modules. During July of last year, various reports emerged reporting about Tesla’s 436 million dollar deal with Samsung to provide camera modules for their Cybertruck, but wait. There’s more. After reading about all these collaborations, you would be wondering how all these sales will positively impact Tesla
one fact that is established in the current narrative is that Tesla requires the supply from Samsung to sustain their EV production; thus, a good relationship with the South Korean company will only put Tesla at an advantage in the area, as mentioned earlier, as Tesla likes to provide their customers with products produced by them, it’s highly likely that
Tesla might strike a proposition through which they can customize the
semiconductors under their brand tag with a consistent partnership with Samsung tesla will eventually develop into an upgraded version of their current self.
That being said, we cannot forget Tesla’s potential the company’s recent success can be owed to the sales record they cracked in the last quarter of 2020 to catch up with its target, not only did its cash holdings rise to 19.4 billion dollars they also achieved an operating margin of 6.3 percent. This certainly would not have been possible if Tesla wouldn’t include Samsung as a part of their semiconductor source chain to counter the automobile market’s shortage. Let us know what you think about Tesla’s collaboration with Samsung in the comments below.