Tesla is in talks with Micron, CG Semi and Tata Electronics for chip sourcing from India

 

 

In a move that could significantly enhance India’s footprint in the global semiconductor supply chain, Tesla is reportedly in advanced talks with key players in the Indian semiconductor ecosystem — including US-based Micron, domestic chipmaker CG Power and Industrial Solutions Ltd (CG Semi), and Tata Electronics — for sourcing critical semiconductor components.

The discussions come as Tesla looks to diversify its semiconductor supply chain and reduce dependency on traditional chip manufacturing hubs. The talks are said to revolve around exploring partnerships for sourcing advanced automotive-grade chips crucial to Tesla’s electric vehicles (EVs), autonomous systems, and infotainment platforms.

Tesla Chip Sourcing Strategy

Tesla’s chip sourcing strategy is undergoing a major shift amid ongoing global supply chain challenges and a rising emphasis on regional diversification. The company's interest in Tesla India supply chain partnerships is gaining traction with India's rapid advancement in semiconductor manufacturing.

Micron’s new facility in Sanand, Gujarat — currently under development — is expected to focus on automotive-grade chip assembly and testing. The US chipmaker’s investment aligns with Tesla's plans to secure a localized supply of memory and logic chips in Asia, particularly for use in electric vehicles and battery systems.

Meanwhile, CG Semi, through its OSAT (Outsourced Semiconductor Assembly and Testing) partnership with global players Renesas and Stars Microelectronics, is positioning itself to cater to both domestic and global clients. Tesla’s interest in CG Semi underscores its intent to tap into scalable Indian solutions that can support high-volume manufacturing for next-gen EVs.

Tesla had previously signed a semiconductor deal with Tata Electronics, signaling confidence in the Tata Group’s ambitions to become a major player in the global chipmaking ecosystem. The conglomerate is investing in advanced semiconductor packaging and fabrication infrastructure, aiming to produce high-performance chips for sectors like automotive, telecom, and industrial automation.

India’s Emerging Role

 

India is emerging as a pivotal player in the global semiconductor narrative, driven by its skilled engineering talent, favorable trade policies, and strategic location. Tesla's interest in Tesla semiconductor partners in India reflects this shift.

The discussions come at a time when Tesla CEO Elon Musk is expected to visit India, with meetings likely to include key policymakers and government officials. His visit is anticipated to coincide with ongoing India-US trade negotiations, where technology collaboration and semiconductor partnerships are high on the agenda.

As India builds its semiconductor infrastructure and deepens its ties with global tech giants, it could soon emerge as a preferred semiconductor hub for the world — with Tesla’s India supply chain journey being a key milestone in that transformation.