Tesla to procure semiconductor chips from Tata Electronics

Elon Musk, CEO of Tesla, is due to visit India on April 21.

Tesla has signed a “strategic deal” with Tata Electronics for the procurement of semiconductor chips for its global operations. The details of this deal, including its value and terms, are still under wraps.

According to a media report, the move could be a part of Tesla’s strategy to diversify its supply chain in preparation for setting up a manufacturing base in India.

Tata Electronics has invested $14 billion in its semiconductor manufacturing business. The company has joined hands with Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) to set up a semiconductor fab in Dholera, Gujarat. It is also installing factories in Hosur, near Bangalore and Assam.

Meanwhile, Elon Musk, CEO of Tesla, is due to visit India on April 21. He plans to meet PM Narendra Modi and we can expect to hear some major announcements during his visit.

Source: ET