Elon Musk’s Tesla Targets India to Diversify Supply Chain

Tesla, led by Elon Musk, has begun a discussion with US memory chip manufacturer Micron and CG Semi (a subsidiary of the Murugappa Group based in Mumbai) to explore supply options as it diversifies its global supply chain, said sources. Tesla had already established a strategic partnership with Tata Electronics for procurement of semiconductors for its global operations.

On X, Elon Musk announced his upcoming visit to India this year.

Micron's factory in Gujarat will offer assembly and testing capability and serve domestic and international customers. The facility operated by CG Semi will provide OSAT operations. The partnership, formed between CG Power, Renesas and Stars Microelectronics, will primarily serve Renesas and also have the capability to supply global customers.

Some Tata affiliates - AutoComp, Consultancy Services, Technologies and Electronics have become Tesla's global suppliers and would be expanding their roles if the EV maker was to enter India.

Tata Electronics is planning a Rs 91,000 crore investment for semiconductor manufacturing in Dholera, Gujarat and is also planning an OSAT facility in Morigaon, Assam for Rs 27,000 crore.

"Tesla spoke to representatives from the three large semiconductor facilities that have taken off in India — Micron, CG Semi and Tata Electronics," a source told ET. It "called meetings about a month-and-a-half ago… to get a sense of what kind of chips are expected to be packaged, when they'll be ramping up and the timelines for operations."