Samsung lands deal with Tesla to supply chips for self-driving system

A new report coming out of Korea says Samsung Electronics has struck a deal with Tesla to supply chips for the company’s autonomous driving technology. Unnamed sources, according to The Electronic Times, indicate that the Seoul-based electronics giant is looking to enter the growing market for self-driving and connected car technology. The newly formed partnership with Tesla will allow the company to strategically position itself within this growing segment.

According to The Electronic Times, an executive director familiar with the deal said, “This is a long-term project that requires about 3 years for design, production of prototype, and mass-production.” adding, “Working with a leading company like Tesla will provide an opportunity to greatly increase capability of Samsung Electronics’ automotive field.”

The partnership brings mutual benefit for Tesla and Samsung Electronics. Tesla had been relying on Mobileye’s EyeQ3 chip to power its first generation Autopilot system, however the relationship turned south after a Model S driver was killed while driving on Autopilot. Reports of Mobileye learning of Tesla’s plan to build its own chip for the company’s, then, upcoming self-driving Tesla Vision system put a further strain on the relationship. Tesla’s new strategic partnership with Samsung will allow the company to engineer, design and produce its own set of self-driving application-specific integrated circuit (ASIC) chips alongside an experienced industry veteran, and one of the world’s largest chipmakers.

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