Samsung Electro-Mechanics, the electronic components units of Samsung, has won a deal to supply Tesla with camera modules.
According to a report by KED, the deal is worth somewhere between $3.2 billion and $4 billion.
Samsung Electro-Mechanics beat rivals LG Innotek and Primax Elecontrocis to secure the deal.
With the deal, Samsung will supply 80 per cent of camera modules used by Tesla. LG Innotek will supply the other 20 per cent.
This is the largest contract ever for the electronic component unit and makes it the largest supplier of camera modules for Tesla.
The contract will see Samsung supply camera modules for the Model 3, Model S, Model X, Model Y, Tesla Semi and the Cybertruck.
The new camera module will be Samsung’s 4.0 version containing 5 million pixels. The 4.0 version is five times clearer than the previous 3.0 generation.
In addition, as per company sources, mass production of the 4.0 camera modules will start as early as July.
This deal made the second big contract won by Samsung in the past year. Last September, the company also won the contract to supply Tesla with Tesla’s next-generation autonomous vehicle chips.
However, neither Tesla or Samsung provided a comment on the potential deal.