Tesla Eyes India’s Chip Space, Engages Micron, CG Semi & Tata – EQ
In Short : Tesla is in talks with Micron, CG Semi, and Tata Electronics to source semiconductor components from India, aiming to diversify its global supply chain. With major investments in Gujarat and Assam, these firms are expanding chip production and assembly. Tesla’s move supports India’s semiconductor ambitions and enhances supply chain resilience amid global uncertainties and rising geopolitical tensions.
In Detail : Tesla is in active discussions with US-based memory chipmaker Micron, India’s CG Semi, and Tata Electronics, as the electric vehicle (EV) leader looks to diversify and expand its global semiconductor supply chain, according to a media report.
While citing sources, the media report said that Tesla initiated meetings around six weeks ago to assess capabilities, ramp-up timelines, and operational readiness of these suppliers.
The talks come amid a broader push by Tesla to tap into India’s burgeoning chip ecosystem. The company’s growing interest in the region follows a reported chip procurement deal with Tata Electronics and coincides with Tesla CEO Elon Musk’s statement on social media platform X over the weekend, expressing eagerness to visit India later this year.
Micron’s upcoming facility in Sanand, Gujarat, is designed for automotive-grade chip assembly and testing. Meanwhile, CG Semi — a joint venture between Renesas and Thailand’s Stars Microelectronics — is building an outsourced semiconductor assembly and test (OSAT) unit to serve global clients. Tata Electronics is also advancing plans for chip packaging and fabrication capabilities focused on EV-relevant components.
The facilities in India primarily target legacy-node semiconductors, ranging between 28nm and 65nm — technologies still widely used in electric vehicles for battery management systems, safety electronic control units (ECUs), and infotainment modules.
Tesla’s renewed interest in India comes as the US and India engage in key trade negotiations, with a high-level Indian delegation scheduled to visit Washington next week.
While Tesla’s India entry had previously faced delays due to import duty concerns and manufacturing strategy uncertainties, this latest outreach could signal a turning point for its ambitions in one of the world’s fastest-growing EV and semiconductor markets.
