Tesla enters strategic agreement with Tata Electronics for semiconductor chip procurement: Report
- In Reports
- 05:12 PM, Apr 15, 2024
- Myind Staff
According to officials familiar with the matter, Tesla has purportedly entered into a strategic agreement with Tata Electronics to acquire semiconductor chips for its worldwide operations. The Economic Times, citing undisclosed sources, reported that the specifics of the deal, including its value and terms, have not been disclosed. The report indicated that this move might form part of Tesla's strategy to broaden its supply chain and establish a notable presence in India.
As per the report, Tata Electronics, spearheading Tata Group's foray into semiconductor manufacturing, has bolstered its workforce by hiring top-level executives. The company has further solidified its presence by establishing semiconductor manufacturing facilities in Hosur, Dholera, and Assam, with plans for expansion underway. Notably, Tata Electronics has invested $14 billion in the business thus far, the report stated.
Elon Musk is anticipated to visit India soon, with plans to meet Prime Minister Narendra Modi to discuss potential investments, particularly concerning the establishment of electric vehicle (EV) manufacturing facilities in the country.
During his visit, the billionaire is expected to unveil significant announcements. Tesla is projected to allocate between $2 and $3 billion towards establishing manufacturing operations for electric vehicles in India.
Recent alterations in import duty regulations could facilitate Tesla's initial focus on importing premium electric models, alongside preparations for local production. Notably, recent policy adjustments in India permit automakers to import EVs priced at $35,000 or higher at a reduced import duty of 15%, provided they commit to investing $500 million within three years to establish manufacturing plants in the country.
Following the Covid-19 pandemic, Tesla has been actively seeking to diversify its component sourcing beyond China, with a particular focus on critical parts such as electric motors and battery packs.
Image source: Business Today
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