In a strategic shift from electric vehicle sales, Tesla is now focusing on building a robust semiconductor supply chain in India, according to sources familiar with the matter. The EV leader is reportedly in active discussions with major Indian firms like Tata Electronics and CG Power (CG Semi) to explore partnerships in chip manufacturing.
This pivot comes as global chip shortages and geopolitical tensions continue to disrupt traditional supply chains, prompting Tesla to seek alternatives. India, with its emerging infrastructure and favorable policy climate, is now being viewed as an ideal location for Tesla’s semiconductor ambitions. The company is especially interested in sourcing integrated circuits, power electronics, and microcontrollers—key components essential for its electric vehicles.
These talks follow the announcement of India’s new semiconductor policy, which offers generous subsidies, streamlined clearances, and strong infrastructure support for chipmakers. Tesla’s potential entry into this space could serve as a powerful endorsement of India’s strategic direction and attract more high-tech investments into the country.
The collaboration could significantly elevate India’s position in the global tech landscape—shifting it from an assembly-centric role to a key player in the semiconductor value chain. With Apple also expanding its chip sourcing from India, industry analysts suggest that Tesla’s involvement could spark a domino effect, encouraging other global giants to follow suit.
Experts believe that such moves will accelerate India’s journey to becoming a semiconductor powerhouse by 2030. For Tesla, this initiative is not only about diversification but also a strategic hedge against supply risks in East Asia. For India, it’s an opportunity to solidify its standing as a critical player in the global chip market.
This marks a new chapter for both Tesla and India—with technology, policy, and ambition converging to shape the future of global manufacturing.
