Samsung Electronics has reached a deal to provide 5G modem chips for some Tesla vehicles. Tesla plans to use the new Samsung-made chips in future Robotaxis and, later, in selected mass‑market models.
The modems will be produced in South Korea rather than in China or Taiwan to reduce reliance on Chinese-made components for vehicles built in the United States. For Samsung, the agreement adds another major contract with Tesla on top of an existing multiyear deal to manufacture custom AI chips for autonomous driving.
Reports from Korean outlet The Elec and EV industry sources say the first wave of Samsung 5G modem chips is expected to support Tesla’s Robotaxi program, starting with fleets in Austin, Texas.
The 5G modems will help handle cloud connectivity for features such as over‑the‑air software updates, high‑definition map transfers, fleet management, and remote diagnostics, which are central to Tesla’s Full Self‑Driving roadmap.
Shift away from Qualcomm
For years, Tesla relied on Qualcomm modems to connect its vehicles, with those chips produced mainly in facilities in China and Taiwan. Now, the move to Samsung’s 5G solution, made in South Korea, lines up with Tesla’s push to build a “China-free” component chain for its U.S. factories from late 2025.
Company-watchers say Tesla has been restructuring sourcing to separate its Chinese operations from its U.S. and European lines, partly in response to trade tensions and tariff risks.
Samsung’s System LSI division has spent years adapting its Exynos modem technology for automotive use, which demands higher durability and reliability than consumer smartphones. Automotive-grade chips must operate across wide temperature ranges, withstand vibration, and stay functional for more than a decade, and Samsung has been building product lines such as Exynos Auto to address those needs.
The company already supplies Exynos Auto V‑series processors for in‑car infotainment systems to automakers including BMW, and it is targeting more deals as vehicles add advanced displays, connectivity, and driver‑assist features. With the Tesla modem agreement and the separate $16.5 billion contract to manufacture Tesla’s next‑generation AI chips on advanced process nodes in Texas, Samsung is tying more of its long‑term growth to automotive and autonomous driving demand.
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