Tesla is in talks with Micron Technology and CG Semi , a Murugappa Group company, as part of efforts to expand and diversify its semiconductor sourcing , according to sources familiar with the matter. The outreach follows Tesla’s previously reported agreement with Tata Electronics for chip procurement, signaling a deeper push into India’s semiconductor ecosystem.
Representatives from Tesla reportedly met with executives from Tata Electronics, Micron, and CG Semi around six weeks ago to understand production timelines and packaging capabilities of the upcoming facilities. These meetings are said to be part of Tesla’s broader assessment of India's semiconductor potential.
Micron’s facility in Gujarat will focus on chip assembly and testing for domestic and international markets. CG Semi, a joint venture with Renesas and Stars Microelectronics, will set up an OSAT (Outsourced Semiconductor Assembly and Test) unit in Sanand, with Renesas as its main customer. Tata Electronics is also investing over ₹91,000 crore in a fab unit in Gujarat and ₹27,000 crore in an OSAT plant in Assam.
As Tesla aims to reduce dependence on Chinese fabs, experts say India is emerging as a credible alternative. Elon Musk confirmed via X that he plans to visit India this year. However, Tesla and the involved companies have yet to comment officially on the discussions.
Tata Group companies—including Tata AutoComp, TCS, Tata Technologies, and Tata Electronics—already supply components to Tesla and are preparing to expand their role should the EV maker increase its India footprint. CG Semi’s Sanand unit and Micron’s ₹23,000 crore ATMP plant are central to India’s semiconductor push.
Automotive analyst Ashwin Amberkar said global players are reworking sourcing strategies due to geopolitical tensions and cost concerns. Tesla is reportedly targeting new supply sources by 2025, with legacy-node chips forming a key component of its strategy.
Fab Economics CEO Danish Faruqui noted that chips in the 28-65 nm range make up a large share of EV components . Tesla’s Battery Management System, crucial for performance and efficiency, will benefit from reliable access to these chips. China’s recent tariff hikes on semiconductor imports are expected to accelerate shifts in global chip supply chains . India, with facilities from Micron, CG Power, and Tata, is positioning itself as a viable alternative for legacy chip manufacturing and packaging.
Industry veteran Arun Mampazhy said Tesla’s strategy aligns with reducing over-reliance on any single country, especially as Chinese competitor BYD operates its own chip division. While India presents an opportunity, challenges remain in scaling up production and developing a mature semiconductor ecosystem.
Amberkar added that strategic collaboration with Tesla could catalyze India's semiconductor ambitions, though intense price competition with China will be unavoidable.
Representatives from Tesla reportedly met with executives from Tata Electronics, Micron, and CG Semi around six weeks ago to understand production timelines and packaging capabilities of the upcoming facilities. These meetings are said to be part of Tesla’s broader assessment of India's semiconductor potential.
Micron’s facility in Gujarat will focus on chip assembly and testing for domestic and international markets. CG Semi, a joint venture with Renesas and Stars Microelectronics, will set up an OSAT (Outsourced Semiconductor Assembly and Test) unit in Sanand, with Renesas as its main customer. Tata Electronics is also investing over ₹91,000 crore in a fab unit in Gujarat and ₹27,000 crore in an OSAT plant in Assam.
As Tesla aims to reduce dependence on Chinese fabs, experts say India is emerging as a credible alternative. Elon Musk confirmed via X that he plans to visit India this year. However, Tesla and the involved companies have yet to comment officially on the discussions.
Tata Group companies—including Tata AutoComp, TCS, Tata Technologies, and Tata Electronics—already supply components to Tesla and are preparing to expand their role should the EV maker increase its India footprint. CG Semi’s Sanand unit and Micron’s ₹23,000 crore ATMP plant are central to India’s semiconductor push.
Automotive analyst Ashwin Amberkar said global players are reworking sourcing strategies due to geopolitical tensions and cost concerns. Tesla is reportedly targeting new supply sources by 2025, with legacy-node chips forming a key component of its strategy.
Fab Economics CEO Danish Faruqui noted that chips in the 28-65 nm range make up a large share of EV components . Tesla’s Battery Management System, crucial for performance and efficiency, will benefit from reliable access to these chips. China’s recent tariff hikes on semiconductor imports are expected to accelerate shifts in global chip supply chains . India, with facilities from Micron, CG Power, and Tata, is positioning itself as a viable alternative for legacy chip manufacturing and packaging.
Industry veteran Arun Mampazhy said Tesla’s strategy aligns with reducing over-reliance on any single country, especially as Chinese competitor BYD operates its own chip division. While India presents an opportunity, challenges remain in scaling up production and developing a mature semiconductor ecosystem.
Amberkar added that strategic collaboration with Tesla could catalyze India's semiconductor ambitions, though intense price competition with China will be unavoidable.
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