Tesla is in discussions with US memory chip maker Micron as well as Mumbai-based CG Semi, a part of Murugappa Group, to source semiconductor components as it looks to diversify its global supply chain.

This is followed by a strategic deal with Tata Electronics to acquire semiconductor chips for its global operations.

As per reports, Tata Group has become a global supplier to Tesla, the world’s most valuable EV Company.

Several Tata companies are now said to be a part of Tesla’s supply chain, providing crucial components and services. They are;

Tata AutoComp: Engineering products for EVs.
Tata Technologies:End-to-end product lifecycle management.
TCS:Circuit-board technologies.
Tata Electronics:Semiconductor chips once its local manufacturing plant becomes operational.

 

Tesla is also said to look into Tata Electronics for printed circuit board assemblies (PCBA), which are critical for battery management systems, motor controller units, and door control mechanisms.

 

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Tata firms have already signed global agreements with Tesla and are supplying various parts and services. Their involvement is expected to grow further, especially if Tesla sets up a manufacturing unit in India.

Tesla's senior procurement officials have been in discussions with Indian suppliers about manufacturing specific components. These include castings, forgings, electronics, and fabrication parts. Tesla is, in a way, preparing the supplier base in India.

In 2024 fiscal year, Indian companies made a significant contribution by supplying nearly $2 billion worth of components to Tesla. As the EV maker looks to diversify its supply chain, its sourcing from India is expected to increase.