Outlook Business Desk
Tesla is reportedly in talks with Micron Technology, CG Semi, and Tata Electronics to secure EV chip supplies from their under-construction factories in India
Elon Musk's EV giant wants to diversify its chip sourcing away from China amid U.S. tariff threats and rising geopolitical risks, and according to an Economic Times (ET) report, India could be the next major base.
Tesla officials have met top chipmakers in India to assess timelines, packaging types, and potential for mass chip production.
Tata AutoComp, TCS, Tata Technologies, and Tata Electronics have already become global suppliers to Tesla and are preparing for a larger role if the EV maker expands its presence in India, reports say. Now, Tata Electronics is setting up a Rs 91,000 crore semiconductor fab in Gujarat and an OSAT unit in Assam.
Murugappa Group’s CG Semi is building a Rs 7,600 crore OSAT unit in Gujarat, with Renesas as the anchor client, but it is reportedly open to taking orders from Tesla as well.
America's Micron Technology is building a semiconductor assembly and test facility in Sanand, Gujarat, India. The project is being developed in phases, with Phase 1—including 500,000 square feet of cleanroom space—initially expected to be operational in late 2024 but now projected for early 2025.
India is reportedly emerging as an alternative to China and Taiwan for mature-node chip supply used in EV components, amid trade tensions and geopolitical risks.
Tesla’s chip demand is shifting toward 28–65 nm nodes, essential for EV battery systems, which India is ready to produce, reports say.