Tesla, under Elon Musk's leadership, has initiated discussions with Micron, an American memory chip producer, and CG Semi, a Murugappa Group subsidiary from Mumbai, to investigate supply options while enhancing its global supply chain, as per knowledgeable sources.
This progress comes after Tesla's previous strategic alliance with Tata Electronics for the acquisition of semiconductors for global operations.
The Micron facility located in Gujarat seeks to offer assembly and testing services for both local and global markets. The unit of CG Semi will concentrate on OSAT activities. This partnership among CG Power, Renesas, and Stars Microelectronics will mainly support Renesas while addressing the needs of international clients.
Multiple Tata businesses, such as AutoComp, Consultancy Services, Technologies, and Electronics, have positioned themselves as global suppliers for Tesla, gearing up for larger roles if the EV manufacturer ventures into India.
Industry specialists observe that global firms are progressively evaluating India for semiconductor activities as they broaden their supply chains.
Independent automotive analyst Ashwin Amberkar says, "There are strong indications that Tesla has started engaging suppliers beyond China and Taiwan, with targets set as early as 2025. India is emerging as a serious contender in this shift."
Tesla's Shanghai Gigafactory currently depends on Chinese fabrication facilities for mature-node chips. However, Amberkar notes that escalating geopolitical tensions and cost increases are compelling Tesla to "rethink its sourcing strategy."
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