Tesla cars to be equipped with Tata chips : Report

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Tesla has signed an agreement with Tata Electronics for purchasing semi-conductor chips for its electric cars. Notably, Tata Group’s company Tata Electronics is establishing a semiconductor chip factory in India. However, no official statement has been released by either company yet. According to a report by the Economic Times, information about this agreement has been provided by some officials involved in the matter.

Tata Group is expanding its presence in the semiconductor industry. Along with its already established semiconductor manufacturing facilities in Hosur, Dholera, and Assam, the company has invested $14 billion in the business to date. With the deal with Tesla, India’s Tata Electronics will not only have the opportunity to collaborate with top global users but will also contribute to India’s increasing presence in the semiconductor global value chain.

India’s automotive market is experiencing rapid growth, with many major companies in the country introducing electric vehicle lines. In this context, Tesla, a leading American company in the electric vehicle (EV) sector, aims to enter the Indian market. Tesla is currently the world’s largest automotive company by market value. Musk is touring India this month, and it is speculated that he may announce significant investments during this time. It is expected that Tesla could invest as much as $2-3 billion in India.

As media reports note, the move could also be driven by favorable import regulations in India. Keeping with recent policy changes, automakers are now allowed to import EVs that have a price band of $35,000 or more at a reduced import duty of 15%. However, this is subject to their commitment to investing $500 million within three years to establish manufacturing plants in the country. Also, India presents as a solid investment destination as Tesla looks to expand its manufacturing horizons beyond China.

To establish a semiconductor chip factory, Tata Electronics has expanded its workforce in recent months by recruiting around 50-60 top-level executives. All these executives are working on semiconductor technology.