Samsung may begin producing semiconductors for Tesla

By Lulu Chang Updated December 12, 2016

elon musk ten year old history of tesla motors

You know the company for its smartphones and its smart home appliances, and now, Samsung may be making its way into the automobile space. Not directly, of course, but rather by way of a rumored new partnership with Tesla. South Korean media reports suggest that Samsung Electronics may supply semiconductors to Elon Musk’s car company, with South Korea’s Electronic Times noting that Samsung “would contract manufacture chips for self-driving features in Tesla vehicles.”

The move certainly seems in line with the South Korean company’s business plans. As Reuters reported, Samsung has attempted to break into the auto space for a while in hopes of creating “a new growth engine,” and back in November, the company announced plans to acquire connected car technology company Harman International Industries.

This new deal with Tesla, however, will serve as Samsung’s official debut into the automotive industry. According to the International Business Times, the South Korean company signed a contract with Tesla to construct an ASIC (Application-Specific Integrated Circuit) system, allowing the firm to build its own System on Chip (SoC) with Samsung semiconductors.

Tesla has long been in search of a partner to help the company perfect its self-driving technology, as the firm recently announced all its vehicles will be autopilot equipped.

“This is a long-term project that requires about 3 years for design, production of prototype, and mass-production.” said a Samsung representative. “Working with a leading company like Tesla will provide an opportunity to greatly increase capability of Samsung Electronics’ automotive field.”

So even if the firm needs to win back your trust when it comes to smartphones, you may want to give Samsung another chance when it comes to its new role in Tesla’s cars of the future.

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Fascinated by the effects of technology on human interaction, Lulu believes that if her parents can use your new app…

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