## Tesla Secures Semiconductor Chips from Tata Electronics
Tesla, the US-based electric vehicle manufacturer, has entered into a strategic partnership with Tata Electronics for the supply of semiconductor chips. This deal, reported by the Economic Times, signifies a crucial step in Tesla's efforts to diversify its supply chain and establish a stronger presence in India.
The agreement's details, including its value and specific terms, remain confidential as both companies have refrained from commenting. However, this move aligns with Tesla's broader strategy to mitigate its reliance on Chinese suppliers and explore alternative sourcing options.
Tata Electronics, spearheading the Tata group's foray into semiconductor manufacturing, has significantly expanded its workforce by recruiting top-level executives. The company boasts semiconductor manufacturing facilities in Hosur, Dholera, and Assam, with plans for further expansion. To date, Tata Electronics has invested a substantial $14 billion in this venture.
## Elon Musk's India Visit and Potential EV Manufacturing
Elon Musk, the visionary behind Tesla, is anticipated to visit India soon. During his visit, he is expected to meet with Prime Minister Narendra Modi to discuss potential future investments, including plans for establishing electric vehicle manufacturing facilities in India. Additionally, Musk is likely to make significant announcements during his visit.
Recent modifications to import duty regulations could pave the way for Tesla's initial focus on importing premium electric models while simultaneously planning local production. The revised policy permits automakers to import EVs priced at $35,000 or higher at a reduced import duty of 15%, contingent upon a commitment to invest $500 million within three years to establish manufacturing plants in India.
Following the Covid-19 pandemic, Tesla has actively sought to broaden its component sourcing options beyond China, with a particular emphasis on critical components like electric motors and battery packs. The partnership with Tata Electronics aligns with this strategy, potentially providing Tesla with a reliable and geographically diverse source of essential semiconductor chips.