Tesla has signed a strategic agreement with Tata Electronics to purchase semiconductor chips for its operations worldwide.
According to an article in the Economic Times, the deal, which was signed a few months ago, positions Tata Electronics as a trustworthy partner for well-known international customers who want to build an important part of their semiconductor value chain in India.
The particular specifics of the transaction, including the amount of the sourcing agreement between Tesla and Tata Electronics, were kept confidential.
During his visit to India this month, Elon Musk is scheduled to meet with Prime Minister Narendra Modi. It is anticipated that he will announce possible investments in India, such as pledges to establish EV manufacturing facilities. According to the ET article, neither Tesla nor Tata Electronics, the leader of the Tata group’s semiconductor manufacturing endeavour, provided a statement.
Tesla may be interested in partnering with an Indian company to expand its market share in India. The American electric vehicle company is allegedly exploring the prospect of forming a joint venture with Reliance to build production facilities domestically, according to allegations that surfaced last week, as Mint pointed out.
Last month, the Indian government approved an Electric Vehicle (EV) policy aimed at positioning the country as a global manufacturing hub for EVs. The policy mandates a minimum investment of Rs 4,150 crore with no maximum investment limit aimed at attracting investments from reputable global EV manufacturers.