Move over, Qualcomm: Samsung takes the wheel with this massive win

The Galaxy giant is taking over a critical job in Tesla's new fleet.

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Samsung chip
Watch out Qualcomm! Samsung just scored a major touchdown in the automotive world. In a move that shakes up the electric vehicle supply chain, the Korean tech giant has reportedly been tapped to supply the 5G connectivity brains for Tesla's upcoming autonomous fleet.

Samsung to power Tesla's connectivity with new 5G chips


In a big win for its chip-making business, Samsung Electronics has reportedly secured a deal to supply automotive 5G modems to Tesla for the very first time. According to a new report, this partnership kicks off in the first half of this year, with the new chips being deployed initially in Tesla’s Robotaxi fleet operating in Texas.

This deal has been in the works for a while. The project reportedly started back in early 2024, coming from a big meeting between Samsung Chairman Lee Jae-yong and Elon Musk in Silicon Valley back in May 2023.

While Samsung has made plenty of 5G chips for its Galaxy smartphones, I think we can all agree that building them for cars is a whole different challenge. These chips have to survive extreme heat, cold, and vibrations, and last for over a decade — a test that Samsung seems to have passed.

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Why this is a big deal


This move marks a significant shift. Until now, Tesla has relied heavily on Qualcomm for the chips that keep its cars connected to the internet. By bringing Samsung on board, Tesla is not only adding a new supplier, but also trying to avoid relying too much on any single region for its parts. For Samsung, it’s a golden opportunity to prove its tech skills go well beyond just making phones and into the rapidly growing world of high-tech cars.

The timing is key because a fast, reliable internet connection is the backbone of Tesla's self-driving goals. While the car's main computer handles the immediate driving decisions, a steady connection is vital for downloading detailed maps, receiving wireless software updates, and sending data back to Tesla.

If the Robotaxi rollout in Texas goes smoothly, we can expect these Samsung chips to eventually make their way into the consumer Model 3 and Model Y vehicles parked in many Tesla owner's driveways.

How do you feel about having Samsung tech in your car?


More than just a great smartphone maker


I’ve always been of the opinion that competition breeds excellence, and seeing Samsung break into a space dominated by Qualcomm is exciting news. It shows that the Korean giant is serious about being more than just a smartphone maker. Personally, I find it reassuring that the same company that makes the screen and memory for some of the best phones on the market is now handling the "nervous system" of next-gen electric vehicles.

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