COMPANIES

No Data Found

NEWS

No Data Found
Advertisement
Tesla eyes India for chip sourcing, holds talks with Micron, CG Semi and Tata Electronics: Report

Tesla eyes India for chip sourcing, holds talks with Micron, CG Semi and Tata Electronics: Report

With Tesla looking to safeguard its semiconductor supply chains amid rising geopolitical tensions, India is emerging as a key player in the electric vehicle giant’s diversification plans.

Pranav Dixit
Pranav Dixit
  • Updated Apr 21, 2025 9:14 AM IST
Tesla eyes India for chip sourcing, holds talks with Micron, CG Semi and Tata Electronics: ReportTesla

Tesla is in active discussions with US-based memory chipmaker Micron and India’s CG Semi, as it evaluates new global semiconductor suppliers, according to an ET report. These talks follow Tesla’s previously reported deal with Tata Electronics for chip procurement, underscoring the EV giant’s growing interest in India’s burgeoning semiconductor ecosystem.

Advertisement

“Tesla spoke to representatives from the three large semiconductor facilities that have taken off in India — Micron, CG Semi and Tata Electronics,” one source told ET. “It called meetings about a month-and-a-half ago to understand what kind of chips would be packaged, timelines for ramp-up and operational readiness.”

Micron’s upcoming facility in Sanand, Gujarat is aimed at automotive-grade chip assembly and testing, while CG Semi’s outsourced semiconductor assembly and test (OSAT) unit, a joint venture with Renesas and Stars Microelectronics, is also expected to serve global customers beyond its anchor client, Renesas.

The outreach comes at a critical time. Tesla CEO Elon Musk posted on X over the weekend that he was “looking forward to visiting India this year,” just as India and the US continue trade negotiations, with a high-level Indian delegation scheduled to visit Washington next week.

Advertisement

Tesla’s India plans had previously faced hurdles. Musk was expected to visit India in 2023, but the trip was postponed amid delays in market entry decisions and pending discussions on local manufacturing and import duties. Meanwhile, Starlink, another Musk-led venture, faced regulatory headwinds in India over licensing and user registrations, causing it to pause operations before securing local approvals.

Micron’s plant in Gujarat, CG Semi’s OSAT unit and Tata’s upcoming fab and packaging facilities are all focused on legacy-node chips, a category that still forms a bulk of EV components, particularly for battery management systems, safety ECUs, and infotainment units. These typically run on 28-65nm nodes, where India could play a significant role.

For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine

Published on: Apr 21, 2025 9:14 AM IST
    Post a comment