Tesla Seeks India For Key Components In Global Supply Chain Expansion

Tesla is in talks with Micron Technology and CG Semi (part of the Murugappa Group) to expand its chip supply network.

This follows Tesla’s recent deal with Tata Electronics to buy semiconductor chips, showing the company’s growing interest in India’s chip industry.

About six weeks ago, Tesla met with leaders from Tata Electronics, Micron and CG Semi to understand their production timelines and packaging capabilities. These meetings are part of Tesla’s effort to evaluate India’s potential in chip manufacturing.

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Micron is building a facility in Gujarat for assembling and testing chips for both local and global markets. CG Semi which has partnered with Renesas and Stars Microelectronics, is setting up a semiconductor assembly and testing unit in Sanand. Tata Electronics is also investing heavily in chip manufacturing—with a ₹91,000 crore fab in Gujarat and a ₹27,000 crore plant in Assam.

India is becoming a promising alternative to China for chip production. Elon Musk confirmed on X that he plans to visit India later this year. 

Recently, he also discussed tech and innovation partnerships with Prime Minister Modi.

Tata Group companies like Tata AutoComp, TCS, Tata Technologies, and Tata Electronics already supply Tesla and are preparing for a bigger role if Tesla expands in India. Meanwhile, Tesla and the other companies involved haven’t officially commented on the talks.

Tesla’s plans to enter India were earlier delayed because of high import taxes and unclear manufacturing plans. But this recent effort may mark a new beginning for Tesla’s goals in one of the world’s fastest-growing electric vehicle and semiconductor markets.

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