Tapping into India’s chip scene, Tesla is in talks with Micron, CG Semi, and Tata Electronics to strengthen its supply chain amid global tensions and Musk’s planned India visit.
Tesla is in talks with multiple semiconductor firms in India to diversify its chip supply chain, a move influenced by increasing geopolitical tensions. According to a report by The Economic Times, the electric vehicle (EV) giant has initiated discussions with Micron, CG Semi, and Tata Electronics.
These talks are part of Tesla’s strategy to reduce dependence on existing suppliers and tap into India’s growing semiconductor industry. The report highlighted that Tesla reached out to representatives of the three firms around six weeks ago to explore their chip packaging capabilities, ramp-up timelines, and operational readiness.
Micron is setting up a facility in Sanand, Gujarat, aimed at assembling and testing automotive-grade semiconductors. Meanwhile, CG Semi, through a joint venture with Renesas and Stars Microelectronics, plans to serve both local and global clients from its OSAT (outsourced semiconductor assembly and testing) unit. Tata Electronics is also advancing its semiconductor packaging and fabrication infrastructure in Dholera, Gujarat.
This renewed interest comes as Tesla CEO Elon Musk hinted at an upcoming visit to India, coinciding with India–US trade discussions and an official Indian delegation’s planned trip to Washington.
Previously, Tesla’s India plans were delayed due to ongoing debates around manufacturing localisation and high import duties. Musk’s earlier visit in 2023 was also postponed. Separately, his satellite venture Starlink had faced licensing issues in India, halting operations until regulatory clearance was secured.
The Indian facilities are primarily focused on producing legacy-node chips (28–65nm), which are essential for EV systems like battery management, safety electronics, and infotainment units. This positions India as a potentially crucial partner in Tesla’s semiconductor supply chain strategy.
