Samsung Display secured a contract to supply 8-inch OLED panels to Tesla starting in 2027, extending the South Korean conglomerate’s deepening relationship with the electric vehicle manufacturer beyond their recent $16.5 billion semiconductor deal.
The display agreement was included when Samsung Electronics signed its foundry contract with Tesla last month, according to industry sources. While Tesla’s electric vehicles currently use 8-inch LCD touchscreens for rear-seat passengers, switching to OLED technology offers limited advantages and comes at two to three times the cost — an expensive proposition as automakers cut component expenses amid slowing electric vehicle demand.
Industry analysts believe the OLED panels will instead be destined for Tesla’s Optimus humanoid robot, specifically for facial displays expected in the third-generation model. The robot’s hemispherical face contours make LCD implementation difficult, while OLED’s self-illuminating properties eliminate the need for backlighting and enable lighter designs — critical factors for maintaining the robot’s balance.
Tesla plans to begin mass production of Optimus robots as early as 2026 for external sales, initially targeting industrial applications where external displays could show task progress or respond to user questions. The technology could later enable more human-like emotional expressions if Tesla pursues consumer markets.
The collaboration reflects Tesla’s preference for supply chain consolidation. Samsung Electro-Mechanics is also reportedly pursuing camera module contracts for Optimus, while Samsung’s foundry division will manufacture Tesla’s next-generation AI6 chips at its Texas facility.
Samsung’s foundry business has struggled with persistent losses, with analysts estimating over 5 trillion won ($3.6 billion) in losses during the first half of 2025. The company holds just 7.7% of the global foundry market compared to Taiwan Semiconductor Manufacturing’s 67.6% share.
For Samsung Display, the Tesla contract diversifies its customer base beyond smartphones and televisions while positioning the company in the emerging robotics sector. However, the deal’s financial impact remains unclear as Tesla has yet to prove commercial viability for its humanoid robots.
