Elon Musk-led Tesla signs strategic deal with Tata Electronics for semiconductor chips: Report – Times of India

The Tata-Tesla deal

Elon Musk-led Tesla has reportedly signed a strategic agreement. Tata Electronics to acquire semiconductor chips for its global operations. The move highlights Tesla’s growing interest in India beyond local revenues.
ET exclusively reported that the deal, which was carefully executed a few months ago, positions Tata Electronics as a trusted supplier to high-end global clients looking to expand their semiconductor value in India. Want to establish an important part of China.
Tesla, a leading American electric vehicle (EV) company, is looking to enter India, the fastest growing automotive market in the world. Elon Musk is going to meet the Prime Minister. Narendra Modi During his visit to India this month. Musk is expected to announce potential investments in India, including plans for EV manufacturing facilities. Tesla currently holds the title of the world’s largest automotive company by market value.

The Tata-Tesla deal

The Tata-Tesla deal

India Electronics and Semiconductor Association (IESA) president Ashok Chandak noted that Tesla’s efforts to establish a local supplier ecosystem for electronics and subsystems indicate its commitment to diversifying its supply chain. are However, he highlighted the need to improve the local semiconductor sourcing ecosystem to support industries such as automotive, which require more value addition in their supply chains.
Tesla is expected to invest around $2-3 billion in India to build electric cars, reflecting growing interest in EVs in the country’s personal mobility market.
Recent policy adjustments have enabled automakers to import EVs priced above $35,000 at a lower import duty rate of 15%. However, this privilege is subject to automakers committing to invest $500 million within three years to set up manufacturing facilities in India.
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Tesla is likely to prioritize premium electric models initially, while also considering local manufacturing of entry-level electric vehicles.
Tata Electronics has bolstered its workforce by hiring 50-60 high-level expatriates in recent months, aiming to leverage their expertise in semiconductor technology, strategic planning, and design to expand its business operations. Have to pick up.
Following the COVID-19 pandemic, Tesla has diversified its component sourcing outside of China for key electronic, electrical, and mechanical parts. Although Tesla keeps its supplier information confidential, it manufactures some electric components internally, such as electric motors, battery packs, and chargers, while purchasing subassemblies and other components from global suppliers.
Tata Electronics has established semiconductor manufacturing facilities in Hosur (Tamil Nadu), Dholera (Gujarat) and Assam, with plans for further expansion to create a well-integrated supply chain in India. The company has so far invested $14 billion in its business operations.
According to sources familiar with the matter, Tata Electronics has invested significantly in the development of local technology in these platforms and has assembled a team with over 1,000 years of combined global domain expertise to lead the project. .

Business news,Tesla,Tata Electronics,Semiconductors,Narendra Modi,Elon Musk,Electric car
elon-musk-led-tesla-signs-strategic-deal-with-tata-electronics-for-semiconductor-chips-report-times-of-india

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