Tesla picks Samsung and LG for cameras in driverless cars

Tesla has chosen Samsung Electro-Mechanics and LG Innotek to supply camera modules for its new CyberCab, a fully driverless taxi. The deal shows Tesla’s confidence in the technology of the two South Korean companies.

Camera modules are like the eyes of a self-driving car. They help the vehicle see roads, traffic lights, other cars, and people. The cameras send this information to the car’s AI, which decides how the vehicle should drive. Since the CyberCab will not have a driver, these cameras must be very accurate and reliable.

Tesla has asked both companies to make camera modules with 5-megapixel image sensors. These cameras are much clearer than the 1.2-megapixel cameras used in Tesla’s current electric cars. Samsung Electro-Mechanics has already started making the new camera modules, while LG Innotek is expected to begin production later this year.

The deal is important for Samsung Electro-Mechanics and LG Innotek because both companies want to reduce their dependence on smartphone camera sales. Samsung mainly supplies camera modules for Galaxy smartphones, while LG Innotek is a key supplier for Apple’s iPhones. As smartphone demand slows, both companies are focusing on fast-growing markets such as self-driving cars, AI, and robotics.

Strong demand from these new businesses is expected to help both companies earn more than 1 trillion won in operating profit this year. It marks an important step in their future growth.