April 27, 2024

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[THE INVESTOR] Samsung Electronics has signed a deal with Tesla Motors to supply chips for the US electric car maker’s upcoming self-driving vehicles, according to industry sources on Dec. 9.

The Korean tech giant, which is speeding up its recent automotive push following the US$8 billion acquisition of Harman International, has reportedly signed a deal to possibly supply “system on chips” for autonomous vehicle systems.

A Samsung official declined to confirm the deal. 

Previously, Tesla used sensors from Mobileye, the Israel-based car parts giant, but the partnership broke up early this year after a fatal car crash in which the driver using Tesla’s Autopilot system. Mobileye claimed Tesla was being too aggressive and encouraged hands-free driving.

Sources said Samsung will design and produce the chips tailored to Tesla’s specific demands, calling it a long-term project that would take some three years for the chip production to start.

In November, the company announced it would team up with German luxury carmaker Audi to develop automotive chips.

With its system chip business growing, Samsung is also said to be considering splitting its System LIS business unit that produces non-memory chips into design and foundry businesses.

By Lee Ji-yoon (jylee@heraldcorp.com)