Elon Musk and Narendra Modi: Tesla is a part of the US memory chip maker Micron as well as Mumbai-based CG Semi, Murugappa Group, discussing the purchase options to evaluate as it seems to diversify its global supply chain, people explained development. It follows the strategic deal of the manufacturer led by Elon Musk with Tata Electronics to acquire semiconductor chips for its global operations reported by ET in April last year.
“Tesla spoke to representatives of three big semiconductor facilities leaving in India – Micron, CG Semi and Tata Electronics,” said one of them. This “called the meetings called a month and a half ago … realized what kind of chips are expected to be packed, when they will take a deadline for ramping up and operation.”
Micron’s Gujarat facility is slaughtered to enable assembly and testing construction and addressing domestic and international demand. The CG Semi facility will look at the outsourced semiconductor assembly and test (OSAT). CG Power, RENENGE and Stars Microelectronics will have an anchor customer in this joint venture, but expected to serve others globally.
On Saturday, Elon Musk posted on X that he was eager to visit India this year. Tesla, Tata Electronics, CG Semi and Micron were sent. The press remained unanswered as time.
The Tata Autochom, Tata Consultancy Services, Tata Technologies and Tata Electronics have all become a global supplier for Tesla and if the EV manufacturer expands into India, it is for a big role, as reported by ET on 21 March.
Tata Electronics, Dulera, Gujarat is investing more than 91,000 crores to set up a semiconductor Fab unit, as well as OSAT facility for ₹ 27,000 crore in Morigon, Assam.
Murugappa’s CG cm, is setting an OSAT feature in Sanand for 7,600 crores, where Micron is also setting up an assembly, testing, marking and packaging (ATMP) feature, also for more than ₹ 23,000 crore ($ 2.7 billion).
Experts point to global corporations who are looking to complete their rapid betting chains on semiconductor operations in India. Ashwin Amberkar, an independent motor vehicle analyst, said, “There are strong indications that Tesla has started to confuse suppliers beyond China and Taiwan.
Tesla’s dependence on Chinese Fabs for mature-nod chips has been central for operation in its Shanghai Gigafctor. However, the growing geo -political risk and rising costs are motivating Tesla to “rethink” its sourcing strategy, he said.
According to Amberkar, CG Semi is setting up a comprehensive-scope OSAT in Gujarat, while Micron’s Sanand plant will focus on the automotive-grade dynamic random-access memory required for computer processors.
He said that Tata’s employed FAB and OSAT facilities may support heritage-nod chip requirements for motor vehicle electronic control units or vehicles fitted in vehicles.
Danish Farooqui, Chief Executive Officer of US-based semiconductor investment advisory firm Fab Economics, said that the ingredient for EVS in 28–65 Nm nodes and the Legacy Packaging Architecture includes a high double digits in a high double digits.
They estimate that Tesla product platform and roadmap are ready for a double-digit annual growth rate in consumption of 28–65 Nm nodes products.
“In particular, the performance and efficiency of the battery management system components are important for players such as Tesla’s competitive gaps, as this battery affects life and efficiency,” said Farooqui.
China is also expected to disrupt the heritage semiconductor supply chains as an anti -anti -tariff allegations of import tariffs on semiconductor products as an allegation of import tariffs over 80%. This will push automotive players with a broadbase supply chain with a global footprint like Tesla.
“Legacy semiconductor manufacturing and new entry into packaging are well deployed for benefits from such restructuring of supply chain. India presents itself as an option for both Legacy Semiconductor Fabrication and Packaging, in which OSAT, Tata Fab and OSAT Aull Alasij Semochactor Packaging Business, “he said.
The Chinese EV veteran byd has its own semocover unit. Industry veteran Arun Mumpzi said, “It becomes an important part of Tesla’s entire EV scheme, which has an in-house semiconductor unit, not much dependent on a country with a stable supply chain as well as several vendors.”
While the original tool manufacturers want flexible, diverse supply chain – not only for geopolitical insulation, but also to reduce the instability in operational disruption and cost – India’s chip sectors still face the scale and ecosystem maturation obstacles despite strong government support.
Analyst Amberkar said, “Partnership with a global EV leader can be a catalyst for India’s chip ambitions.”
However, the country will have to reconsider China’s technology and compete rapidly on the price front as well.
