Tesla has quietly inked a strategic deal with Tata Electronics to secure semiconductor chips for its global operations, as per The Economic Times.
The agreement, finalized a few months ago, highlights Tata Electronics as a reliable supplier for major global clients, underscoring its role in supplying a crucial component of semiconductor setups in India.
For Tesla, the move signifies its growing interest in India, the world's fastest-growing major car market. Elon Musk's upcoming visit to India to meet Prime Minister Narendra Modi has fueled speculation about potential investments in the country, including in electric vehicles (EVs).
While neither Tesla nor Tata Electronics has confirmed the deal's specifics, industry experts believe it could involve substantial investment. Ashok Chandak of the India Electronics and Semiconductor Association (IESA) notes Tesla's move towards local suppliers, indicating a diversification strategy beyond traditional markets.
Tesla's potential investment in India could range between $2-3 billion, primarily focusing on high-end electric models initially. Recent policy changes, including reduced import duties for EVs priced above $35,000, have incentivized such investments, albeit with commitments to local manufacturing.
Tata Electronics has bolstered its chip business by recruiting 50-60 experts from abroad, indicating a push for technological advancement. With chip-making facilities in multiple Indian states and plans for expansion, Tata Electronics aims to solidify its position in the semiconductor industry.
Randhir Thakur, leading Tata Electronics, brings significant expertise from his tenure at Intel, leveraging his network to attract top talent to the company. With substantial investments and a seasoned team, Tata Electronics is poised to play a crucial role in India's semiconductor ecosystem.
