Tesla, the electric vehicle maker, has settled a patent war with Largan, the world's leading lens manufacturer from Taiwan. Sources said that Largan has successfully obtained most of Tesla's car lens orders.

The settlement shows that the battle with Largan has ended early, before reaching the litigation stage, sources said. They added that Largan not only won Tesla's orders, but also raised the prices of some optical products supplied to Tesla by up to 90%, including licensing fees.

The biggest loser of this patent war is Asia Optical, Tesla's existing car lens supplier. Sources said that Tesla transferred Asia Optical's orders to Largan and reached a settlement. Previously, Largan had a nearly 10-year patent war with Advanced Optoelectronic Technology (AOT), which was not settled until 2021. Largan acquired a 14.04% stake in AOT and became its largest shareholder.

Some analysts believe that Largan may transfer its low-end mobile phone lens orders to AOT after shifting its focus to car lenses, to avoid internal resource competition.

Largan has launched several patent wars in recent years. Last year, Largan sued Yujing Optics, the second-ranked lens maker in the market, in Xiamen. This was the second time that Largan launched a patent war against Yujing Optics. Some insiders believe that this patent war involves Apple's new lens orders for mobile phones to be released in the second half of the year and the MR headset unveiled at WWDC 2023.

It is reported that all Apple MR device lens assembly orders were shared by Largan and Yujing Optics.