As per reliable sources, U.S. automotive giant Tesla Inc. has secured a deal worth USD 4 billion with Samsung Electronics Co. Ltd. to supply cameras for the EV automaker's self-driving systems.

Samsung has successfully edged out Primax Electronics Ltd. and LG Innotek Co. Ltd. for this contract, but this isn’t the first time the Korean electronics giant has collaborated with the American automaker intending to manufacture parts for its vehicles.

In September last year, Samsung was offered a contract to supply Tesla with the next-generation Full Self-Driving (FSD) 4.0 processor, as well as a USD 436 million worth deal in July to supply camera modules for a new vehicle, which is speculated to be the Tesla Cybertruck.

According to the agreement, LG Innotek will continue to supply 20% of the cameras for Tesla's self-driving system, whereas Samsung would supply the majority of the other 80% units. Every Tesla model, including the Model S, Model 3, Model X, Model Y, and the upcoming Cybertruck, are expected to feature these cameras.

Besides, these camera systems are crucial for Tesla since they are a vital aspect of the company's technological growth and would be used for the company’s Full Self Driving system to provide images for its neural nets over the current lidar or radar technologies.

In the latest generation of the FSD, Tesla is using 8 cameras with an anticipated megapixel of 1.2 million. Switching to Samsung cameras is likely to increase that number to five million megapixels, resulting in a significant improvement in image quality.

Despite recent claims that Tesla has filed to use a new radar system with the Federal Communications Commission (FCC), this investment is reportedly a part of the company's plan to accomplish self-driving using only camera-based vision.

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