Tesla is currently engaging in discussions with Micron, a US-based memory chip manufacturer, and CG Semi from India as part of its quest for new global semiconductor partners. This move follows Tesla’s earlier agreement with Tata Electronics for chip sourcing, highlighting the firm’s expanding interest in India’s emerging semiconductor industry.
Tesla representatives have interacted with key personnel from major semiconductor facilities in India, including Micron, CG Semi, and Tata Electronics. According to a source, meetings were arranged about six weeks ago to explore the types of chips that would be produced, the timelines for production ramp-up, and operational status.
Micron is developing a facility in Sanand, Gujarat specifically for automotive-grade chip assembly and testing. In parallel, CG Semi’s outsourced semiconductor assembly and test (OSAT) unit, a collaboration with Renesas and Stars Microelectronics, is also set to cater to a global clientele beyond its primary customer, Renesas.
This outreach occurs during a pivotal moment. Elon Musk, the CEO of Tesla, announced on X over the weekend that he is keen to visit India this year, coinciding with ongoing trade negotiations between India and the US, with a senior Indian delegation scheduled to travel to Washington next week.
Tesla’s plans for India have previously encountered obstacles. Musk was anticipated to travel to India in 2023, but the visit was delayed due to hold-ups in market entry choices and ongoing discussions regarding local manufacturing and import duties. Concurrently, Starlink, another venture led by Musk, faced challenges with Indian regulations pertaining to licensing and user registrations, leading to a suspension of operations until local authorisations were achieved.
Micron’s factory in Gujarat, CG Semi’s OSAT facility, and Tata’s future fabrication and packaging plants are all concentrating on legacy-node chips, which remain a major component in electric vehicles, especially for systems like battery management, safety electronic control units, and infotainment systems. These components typically operate on 28-65nm nodes, where India could establish a significant presence.
