Tata Electronics Secures Semiconductor Deal with Tesla By CIOTechOutlook Team

Tata Electronics Secures Semiconductor Deal with Tesla

CIOTechOutlook Team | Monday, 15 April 2024, 02:59 IST

Tesla, an automotive firm marked a strategic contract with Tata Electronics to obtain semiconductor chips for its worldwide tasks, authorities near the improvement added, highlighting the electric carmaker's rising interest in India past neighborhood income age.

The deal is critical as it positions Tata Electronics as a dependable provider for top-level worldwide clients trying to establish a crucial part of their semiconductor value chain inside India.

The US-based electric vehicle (EV) major is quickly entering India, the world's quickest-growing major auto market. Elon Musk is visiting India this month for a gathering with Prime Minister Narendra Modi. Musk is supposed to declare expected Indian speculations, including a responsibility of assets toward EV producing offices. His firm is the world's biggest car organization by market esteem.

Both firms driving the Tata group’s entry to semiconductor fabricating didn't remark. The value of the TeslaTata Hardware obtaining bargain and other subtleties couldn't be discovered right away.

Ashok Chandak, president of India Electronics and Semiconductor Association (IESA), said Tesla’s decision to create an ecosystem of local suppliers for electronics and subsystems shows it is not dependent on just one market. The major concern is local sourcing of semiconductors. “This needs improvement in the supply chain as value addition for the industrial and automotive segments is much higher,” said Chandak.

Even though evaluations differ, most industry specialists accept that Tesla will probably put something like $2-3 billion in India to produce electric vehicles, which have a small yet growing offer in the nearby private portability market.