Tata Group will reportedly make semiconductor chips for the electric car manufacturer owned by Elon Musk
Tesla has reportedly signed a deal to procure semiconductor chips for its global operations from Tata Electronics, which is part of one of India’s largest conglomerates, the Tata Group.
The agreement was quietly finalized a few months ago, the Economic Times newspaper reported on Monday, adding that the move aligns with the car maker’s strategy of diversifying its supply chain.
The deal positions Tata Electronics as an important supplier for prominent global clients aiming to establish a crucial segment of their semiconductor value chain in India, the ET claimed. Neither Tata nor Tesla has commented on the development.
The Tata Group’s overall market capitalization exceeded the $365 billion mark in February, with its IT arm, Tata Consultancy Services (TCS), accounting for around half of this. Tata also owns four airlines, including Air India – the national carrier that was privatized in 2022.
News of the deal comes days before Elon Musk’s planned visit to the country. Last week, the tech billionaire announced plans to visit India on April 21 for a two-day tour, during which he is expected to meet Indian Prime Minister Narendra Modi. He is expected to announce investment in the country worth between $2 billion and $3 billion, as well as launching his Starlink service during the visit, Indian media outlets have reported.
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