15 Apr 2024
Tata Electronics will provide semiconductor chips for Tesla’s global operations.
Tesla signed a strategic agreement with Tata Electronics a few months ago to procure semiconductors for operations worldwide. It aims to set up operations in India. Elon Musk is expected to visit Prime Minister Narendra Modi to discuss the company’s potential investments in the country.
This will position Tata Electronics as a trustworthy supplier to major international clients looking to establish a semiconductor value chain in India. This move backs Tesla’s strategy to set up its presence in India. Tata Electronics is strengthening its C-suite by recruiting top-level executives.
Tata Electronics invested $14 billion in the semiconductor facilities in Assam, Dholera, and Hosur. Tesla has been looking for sources beyond China for critical EV parts like electric motors and battery packs.
Tesla is expected to invest $2-3 billion in establishing electric vehicle manufacturing in India. The top contenders include Tamil Nadu, Maharashtra, and Gujarat, which have established automotive hubs.