Tesla Explores Indian Semiconductor Suppliers to Strengthen Global Supply Chain
Interior of Semi featuring a central seating position with all-electric architecture. Photo courtesy of Tesla
MUMBAI, India—According to The Economic Times, Tesla is expanding its semiconductor sourcing strategy by engaging with key Indian partners. The EV giant is in talks with U.S.-based Micron and Mumbai’s CG Semi (part of the Murugappa Group) to source semiconductor components. This follows Tesla’s strategic chip procurement deal with Tata Electronics.
Sources say Tesla recently held discussions with major semiconductor players — Micron, CG Semi, and Tata Electronics — to understand their chip production timelines and capabilities. Tesla’s move comes amid a broader strategy to reduce reliance on Chinese suppliers due to geopolitical tensions and rising costs.
Micron and CG Semi are both developing assembly and testing facilities in Gujarat, while Tata Electronics is investing heavily in semiconductor fabs and OSAT (Outsourced Semiconductor Assembly and Testing) facilities in Gujarat and Assam. These facilities are expected to support Tesla’s future needs for legacy-node chips essential for electric vehicles.
Experts highlight that India is becoming a strong contender in the global chip supply chain, offering an alternative to China and Taiwan. However, India must overcome challenges related to scale and ecosystem maturity to meet global standards.
Tesla’s shift to sourcing from India is seen as part of a broader trend among global automakers seeking resilient, diversified supply chains. If successful, the move could significantly boost India's semiconductor ambitions.
Meanwhile, Elon Musk has indicated plans to visit India later this year, signaling potential deeper engagement with the country’s growing tech sector.
Looking for quick answers on assembly and manufacturing topics? Try Ask ASM, our new smart AI search tool. Ask ASM
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
.webp?height=200&t=1757085603&width=200 "Supplymap.jpg")
