Samsung Electronics will supply automotive 5G modems to Tesla, to be applied first on the US giant’s Robotaxis, the Korean media outlet The Elec reported on Tuesday.
Citing industry sources, the report noted that Samsung Electronics completed developing 5G modems for the pure EV maker, with testing underway.
Its first volumes are set to be provided in the first half of this year through Tesla‘s Robotaxis.
As of Tuesday, the Elon Musk-led company has at least ten Cybercabs vehicles roadtesting across the US. As they are test vehicles, the vehicles are equipped with a steering wheel and pedals.
The 5G modems – to replace the Qualcomm communication modules the automaker had utilized until now – are planned to extend to other Tesla models at a later stage.
Apart from these products, Samsung Electronics is tasked with producing Tesla‘s next-generation AI6 chip for autonomous driving.
Last September, Elon Musk confirmed that Samsung will produce Tesla’s AI6 but not the AI5.
“The Samsung fab in Texas will make AI6, not AI5, and the decision regarding using HBM has not been made yet,” Musk wrote on September 15.
A few months earlier, the Tesla chief had praised both suppliers TSMC and Samsung.
“Both TSMC and Samsung are great companies. It is an honor to work with them,” he wrote on X.
Last July, Tesla and Samsung announced a foundry contract valued at 22.7648 trillion won ($15.4 billion) for this chip.
However, an industry source confirmed to The Elec that the 5G modems’ supply came from a “cooperation that began before the AI chip.”
According to the outlet, this supply discussion and agreement trace back to May 2023, with a meeting between Samsung Electronics Chairman Lee Jae-yong and Tesla‘s CEO Elon Musk at Samsung Electronics’ Semiconductor Research Center in Silicon Valley.
The pact not only solidifies Tesla‘s and Samsung Electronics’ partnership but also appears to be a way to reinforce the automaker’s Out of China and Out of Taiwan (OOC and OOT) policy.
Automotive 5G Modems
According to industry sources cited by The Elec, Samsung Electronics’ System LSI Division began developing early last year.
The department is also in charge of designing the communication chips, whereas partner companies manage its modularization.
Best known for its 5G smartphone modems, Samsung Electronics had to significantly adapt the technology for automotive use.
Unlike consumer devices, vehicle-grade communication chips are required to tolerate extreme heat and vibration, and to have a guaranteed lifespan of over a decade.
For Tesla‘s Full Self-Driving (FSD) system – which will no longer be available for purchase after February 14 –, reliable communication remains essential for maps, fleet management, remote diagnostics and over-the-air (OTA) updates.
This prompted the US giant to reorganize its 5G modem supply chain ahead of its robotaxi expansion.
OOC and OOT Approach
In May 2024, Japanese media outlet Nikkei had reported that the US giant had requested suppliers to produce outside of the two East Asian countries.
At the time, a Taiwanese supplier mentioned Tesla wanting “all components to be OOC, OOT,” by 2025.
The same strategy is applied in Korea’s parts industry, instead named NCNT (No China, No Taiwan (NCNT), due to geopolitical reasons.
