Tesla is reportedly broadening its collaboration with Samsung Electronics by sourcing 5G automotive modems for its electric vehicles, including upcoming Robotaxi deployments. The shift to Samsung’s connectivity hardware underlines Tesla’s commitment to bolstering its autonomous driving and communication capabilities, and represents a move to secure greater independence in its technology supply chain. The decision could reduce Tesla’s dependence on earlier suppliers while ensuring its vehicles meet evolving expectations for data connectivity. Both companies have declined to disclose financial details but industry analysts note the partnership could shape future technology trends in the automotive sector.
Reports from the previous year highlighted Tesla’s reliance on Qualcomm for automotive modems, with the bulk of its vehicle connectivity still managed through long-standing suppliers. At that time, Samsung’s presence in Tesla’s component ecosystem was largely focused on AI chips, including joint efforts on hardware built for autonomy. The current development marks a significant step, as Tesla now appears to diversify both connectivity hardware and semiconductor supply to address supply chain resilience and support the expected scale of its Robotaxi network. Prior analyses suggested this diversification would take longer, signaling a more rapid timeline for integration than many had foreseen.
How will Samsung’s 5G modem impact Tesla’s vehicles?
Industry sources indicate that Samsung’s System LSI division has finished developing an automotive-grade 5G modem specifically for Tesla. This modem reportedly passed rigorous engineering processes distinct from consumer electronics, emphasizing high durability and operational reliability over extended periods. The technology entered testing in early 2024 and is slated for initial deployment in Tesla’s Robotaxi fleet in Texas before reaching broader consumer vehicle lines. Samsung stated,
“Our team has invested significant engineering effort to meet automotive industry standards for this modem.”
Why is Tesla shifting toward new connectivity partners?
Tesla’s decision to incorporate Samsung’s 5G modem stems partially from an ambition to diversify its supplier base, especially as vehicle connectivity assumes a central role in autonomous driving strategies. Reliable and high-speed data transmission is vital for functions such as real-time mapping, over-the-air software updates, and fleet coordination. By adopting a new supplier for critical connectivity, Tesla is responding to global supply chain uncertainties and strengthening operational control. A Tesla spokesperson commented,
“Diversifying our technological partnerships helps us build more robust vehicle platforms for the future.”
What does this mean for the companies’ broader relationship?
The modem contract signals a deepening partnership, following Tesla’s earlier selection of Samsung to manufacture its next-generation AI6 chips. Together, the AI chip and modem agreements position Samsung as a crucial player in the supply of advanced vehicle electronics to Tesla. Analysts suggest the partnership could help Tesla further its objectives in the North American market by mitigating geopolitical risks associated with other global suppliers. For Samsung, the deal represents new ground in automotive semiconductors, potentially opening access to expanded business with additional automakers addressing similar 5G and AI demands.
With the increasing demands of autonomous driving and connected services, automakers are under pressure to develop resilient and reliable technology partnerships. Tesla’s arrangement with Samsung demonstrates an effort to control more of its technology stack, ensuring that connected vehicle requirements for latency, coverage, and durability are met. For consumers, the introduction of Samsung’s 5G modem could lead to more seamless software updates and consistent performance in Tesla vehicles, especially in the context of wider Robotaxi operations. As automotive connectivity continues to grow in importance, these kinds of partnerships are likely to shape industry standards and influence the direction of future innovations.
