Tesla Eyes India to Build Chip Supply Chain with Key Partnerships

Tesla, led by Elon Musk, is in talks with major chip companies like Micron, CG Semi, and Tata Electronics to boost its global semiconductor supply chain. According to a recent report, these discussions aim to reduce dependence on a single region and explore new sources for critical chip components.

Micron, a US-based memory chipmaker, is building a facility in Gujarat to support both Indian and global markets. Tesla is reportedly interested in Micron’s capabilities for assembly and testing operations. Similarly, Mumbai-based CG Semi, a joint venture between CG Power, Renesas Electronics, and Stars Microelectronics, is setting up an advanced OSAT (Outsourced Semiconductor Assembly and Test) plant. Initially catering to Renesas, this facility plans to expand to serve more global clients, including Tesla.

Tata Electronics, which already has a chip supply agreement with Tesla from 2023, is also part of these talks, signaling Tesla’s strong focus on India as a key part of its supply chain.

Tesla is evaluating chip packaging technologies, production timelines, and facility scaling capabilities. These steps come as many global firms, including Tesla, look to diversify beyond China due to geopolitical tensions.

Elon Musk recently confirmed plans to visit India in 2024, underlining Tesla’s growing interest in the Indian market.

Source: Acko Drive