Image: Tesla
Samsung is reportedly set to supply 5G modem chips to Tesla, marking the first time the South Korean tech giant will provide cellular connectivity hardware for the automaker’s vehicles. According to a report from The Elec, the new 5G modems will initially be deployed in Tesla Robotaxis operating in Texas, with broader use across additional Tesla models expected later on.
The deal further deepens the growing partnership between Tesla and Samsung. Tesla already relies on Samsung for its current-generation AI4 chips found in mainstream vehicles today, and the two companies confirmed last year that Samsung will manufacture Tesla’s next-next-generation AI6 autonomous driving chips at its U.S.-based fabs. Adding 5G modems into the mix cements Samsung as a critical supplier across both compute and connectivity for Tesla’s future vehicles.
Sources cited by The Elec said Samsung System LSI has completed development of the automotive-grade 5G modem and is now testing it, with initial supply expected to begin in the first half of the year. Unlike smartphone modems, automotive 5G chips must withstand extreme temperatures, constant vibration, and offer operational lifespans of more than a decade. Samsung reportedly developed the modem specifically to meet Tesla’s requirements, handling chip design in-house while working with subcontractors on modularization.
Tesla has historically relied on Qualcomm for its modem chips, many of which were manufactured in China or Taiwan. This shift to Samsung appears closely tied to Tesla’s broader effort to reduce reliance on Chinese and Taiwanese supply chains, particularly for vehicles built in the U.S. The company has increasingly pushed suppliers toward an “Out of China, Out of Taiwan” approach, a strategy that gained momentum amid rising geopolitical tensions in the region.
That strategy also explains why Samsung is playing such a central role. While Tesla’s upcoming AI5 chips will be produced by TSMC in Taiwan, AI6 chips are slated to be built by Samsung in the U.S., following a $16.5 billion production agreement announced by Elon Musk last summer. Musk has since suggested the deal could grow significantly larger over time.
For Samsung, the modem deal represents an important expansion beyond smartphones and into the automotive sector, where Tesla’s leadership in autonomous driving could open doors to future business with other automakers. For Tesla, reliable high-speed connectivity is essential, particularly for Robotaxis that depend on constant data access for maps, over-the-air updates, and fleet operations.
