Tesla CEO Elon Musk and some of his executives reportedly met with Samsung Electronics Chairman Lee Jae-yong and others from the company on Sunday, May 14, 2023. Inside sources claim the two companies were discussing future cooperation related to next-gen technology for fully autonomous driving, among other related topics.
Samsung is the most prominent chipmaker in the world, so it makes sense that one of the leaders in advanced driver-assist systems would meet with the company. However, this was actually the first time CEO Musk and Chairman Lee have met in person. According to The Korea Herald, Samsung co-CEO Kyung Kye-hyun and foundry business chief Choi Si-young were also on hand for the high-profile discussion.
This is not to say Tesla and Samsung don’t have a history, however. The two companies have been co-developing self-driving chips since 2019. However, it appears the goal here may be to boost that relationship and take the technology to the next level. Samsung is reportedly hoping to win Tesla over as the US EV maker is also eyeing Taiwan Semiconductor Manufacturing Co. as an option going forward.
Tesla needs to ensure that Samsung, a company that has many other high-profile clients, can ramp up its efforts and make more chips for the automaker. Samsung also manufactures advanced chips for autonomous driving for companies like Mobileye and Nvidia, both of which Tesla has worked with in the past.
After a lengthy battle with supply chain issues that resulted in a chip shortage impacting the entire global auto industry, it’s projected that the chip market is poised for huge growth. Strategy Analytics and Research and Markets suggests the sector will be valued at a whopping $400 billion in 2024 and $700 billion in 2028.
An anonymous source familiar with the details of the recent meeting between Tesla and Samsung chiefs shared that there was discussion about how the two could increase their levels of cooperation in the future. Moreover, the goal seemed to be combining forces to become obvious leaders in futuristic segments, such as fully autonomous driving technology.
The source added that Samsung’s chairman also emphasized its future growth goals, which not only included chip development, but also batteries, network services, artificial intelligence, and other related ventures.