In a strategic move to diversify its semiconductor supply chain, Tesla has entered into discussions with chipmaker CG Semi and Micron, following its earlier agreement with Tata Electronics in 2023. These engagements aim to explore potential collaborations in chip sourcing, focusing on aspects like packaging capabilities, production timelines, and scalability.

Tesla's prior agreement with Tata Electronics, established in 2023, marked a significant step in sourcing semiconductor chips for its global operations. This partnership underscores Tata Electronics' role as a reliable supplier in the semiconductor value chain within India.

Beyond Tata Electronics, Tesla is exploring collaborations with CG Semi, a Mumbai-based company, and Micron, a US-based memory chipmaker. CG Semi, part of the Murugappa Group, is setting up an outsourced semiconductor assembly and test (OSAT) plant, initially catering to Renesas but expected to serve other global clients. Micron's facility in Gujarat is positioned to serve both domestic and export markets through assembly and test manufacturing.

Read how Tata secured a £750 Million Loan to establish the UK's Largest Battery Manufacturing Facility here!

Strategic Implications for India

These developments signal Tesla's growing interest in India as a strategic partner in its supply chain ecosystem. By engaging with Indian semiconductor firms, Tesla aims to de-risk operations away from China, aligning with broader geopolitical shifts. This move not only strengthens Tesla's supply chain but also positions India as a significant player in the global semiconductor industry.