TESLA Camera Module Bid: Samsung Clean Sweeps LG & The Taiwanese

It’s the end of the first quarter with lots of developments in tech this year, and we are amid the Q2, and we’re sure is a lot to expect this year in 2022.

As we know, LG & Samsung are archival in several industries and occasional partners also. However, the Competition b/w LG & Samsung has sparked up this time. LG & Samsung deals in various industries, head to head but are also minor components manufacturers and suppliers.

Samsung’s clean sweep:

According to the report from the tech industry in the 2nd week of this month, Samsung Electro-Mechanics(SEM) got the upper hand. They secured the electric vehicle camera module deal from LG Innotek. LG Innotek faced a complete loss.
Samsung Electro-Mechanics stands as the winner of the bid for camera modules for Semi and Cybertruck.
Last year also, SEM captured almost every camera module order for cyber trucks, and the deal was a split between SEM and other Taiwanese companies. SEM plans to deliver EV camera modules for electric trucks to TESLA’s two super factories in Shanghai, China, and Berlin, Germany.

The Bid:

This would be the second time LG Innotek lost the tender to SEM, the bid was held for all EVs, but especially the EV semi and Cyber truck, which were the central attractions of this bid.

TESLA Model S (sedan), Model 3 (sedan), Model X (SUV), and Model Y (SUV) are already in the market and TESLA Semi and Cyber truck are yet to be released, Hence capturing the deal for central pieces was a huge victory for SEM.
Before the bidding, some observers and experts believed SEM would win and that’s exactly what happened.

What To Expect From The Future:

Tesla’s camera module market share comprised 60-70% of LG Innotek and 30-40% of Samsung Electro-Mechanics in terms of both quality and cost last year. This year, it is said to increase as SEM secured all orders for the Semi.

EV’s camera modules are expensive components as compared to the phone industry. Thus, Samsung wanted to grab this opportunity even seeing eye to eye with some Taiwanese competitors which brought some challenges.

On the other hand, LG has already a supplier to apple and earning profit.

The camera module for electric vehicles is a high margin and expensive product compared to equipment for smartphones. One TESLA EV has eight camera modules. The front camera is more expensive than the rear, so this sits right in the spot for Samsung as this would give them profit and establish them as a frontrunner in the business, commanding respect.

TESLA is expected to ship 1.5 to 2 million electric vehicles this year. The 1.5-2 million units are 2.1 times higher than the 940,000 units delivered last year. A single-camera module costs slightly over US$10. Supplying one unit of TESLA’s EV will give the supplier around US$100 in revenue.

However, due to hindrances in the operation of local factories in Shanghai due to SARS COVID 19, a sluggish economy, and the ongoing Russia-Ukraine war, it would be seen how TESLA would do in the market. Still, one thing is sure this is a win-win for Samsung in terms of profit and reputation.

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