Tesla looks to American, Indian chipmakers to diversify supply chain

Tesla is reportedly in advanced discussions with US-based Micron Technology and Mumbai-based CG Semi (a Murugappa Group venture) to explore potential chip sourcing partnerships, according to The Economic Times. This move aligns with Tesla’s broader strategy to diversify its semiconductor supply chain amid global geopolitical shifts.

These discussions follow Tesla’s earlier collaboration with Tata Electronics, announced in 2023, to source semiconductor components for its global operations.

The talks with Micron, CG Semi, and Tata Electronics have primarily focused on capabilities around chip packaging, production timelines, and future scale-up plans.

Micron’s new facility in Gujarat is geared for both domestic and international markets, focusing on assembly and testing. Meanwhile, CG Semi , a joint venture between CG Power, Renesas Electronics, and Stars Microelectronics, is developing an outsourced semiconductor assembly and test (OSAT) facility, which will initially support Renesas and later expand to serve global clients.

Tesla’s active engagement with India’s growing semiconductor ecosystem highlights the country's rising prominence in the global chip supply chain and the EV giant’s intention to reduce reliance on China.