Elon Musk’s Tesla eyes India to diversify its global supply chain; in talks with CG Semi, Micron

Elon Musk introduced on X on Saturday about his anticipated go to to India this yr. (AI picture)

Elon Musk-led Tesla has began talks with American reminiscence chip producer Micron and Mumbai’s CG Semi, a Murugappa Group subsidiary, to discover supply options while increasing its global supply community, in accordance to knowledgeable sources. This improvement follows Tesla’s earlier strategic partnership with Tata Electronics for semiconductor procurement for worldwide operations.
Elon Musk introduced on X on Saturday about his anticipated go to to India this yr.
“Tesla spoke to representatives from the three large semiconductor facilities that have taken off in India — Micron, CG Semi and Tata Electronics,” a supply informed 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.”
The Gujarat-based Micron facility goals to present meeting and testing capabilities, serving each home and worldwide markets. CG Semi’s unit will concentrate on OSAT operations. This collaboration between CG Power, Renesas and Stars Microelectronics will primarily serve Renesas while catering to global shoppers.

Tesla India Plans

Various Tata enterprises together with AutoComp, Consultancy Services, Technologies and Electronics have established themselves as Tesla’s global suppliers, making ready for expanded roles ought to the EV maker enter India.
Tata Electronics has dedicated investments of Rs 91,000 crore for a semiconductor manufacturing unit in Dholera, Gujarat, alongside a Rs 27,000 crore OSAT facility deliberate in Morigaon, Assam.
Murugappa’s CG Semi is establishing an OSAT facility in Sanand with an funding of Rs 7,600 crore, alongside Micron’s meeting, testing, marking, and packaging (ATMP) facility, valued at over Rs 23,000 crore ($2.7 billion).
Industry specialists be aware that worldwide firms are more and more contemplating India for semiconductor operations as they diversify their supply chains. Independent automotive analyst Ashwin Amberkar says, “There are strong indications that Tesla has started engaging suppliers beyond China and Taiwan, with targets set as early as 2025. India is emerging as a serious contender in this shift.”
Tesla’s Shanghai Gigafactory at present will depend on Chinese fabrication amenities for mature-node chips. However, Amberkar notes that escalating geopolitical tensions and value will increase are compelling Tesla to “rethink its sourcing strategy.”
Amberkar explains that CG Semi is creating a complete OSAT facility in Gujarat, while Micron’s Sanand unit will specialise in automotive-grade dynamic random-access reminiscence for laptop processors.
According to him, Tata’s proposed fab and OSAT amenities might fulfil legacy-node chip necessities for automotive digital management items or specialised automobile computer systems.
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China’s transfer to impose over 80% import duties on semiconductor merchandise, in response to US tariffs, is probably going to have an effect on conventional semiconductor supply networks. This scenario will encourage global automotive producers akin to Tesla to diversify their supply sources.
The Chinese electrical automobile producer BYD operates its personal semiconductor division. “It becomes a crucial part of Tesla’s whole EV plan to have an in-house semiconductor unit, have a steady supply chain as well with multiple vendors not overly dependent on one country,” stated trade veteran Arun Mampazhy.
Original tools producers search sturdy and diversified supply chains, not solely for defense from geopolitical points, but additionally to cut back operational disruptions and worth fluctuations. Despite robust governmental assist, India’s semiconductor sector continues to face challenges relating to scale and ecosystem improvement.
“Partnering with a global EV leader could be catalytic for India’s chip ambitions,” stated analyst Amberkar.
Nevertheless, India should deal with the technological benefits of China while sustaining aggressive pricing buildings.