[TusharK]

Tesla has signed a “strategic deal” with Tata Electronics for the procurement of semiconductor chips for its global operations. The details of this deal, including its value and terms, are still under wraps.



According to a media report, the move could be a part of Tesla’s strategy to diversify its supply chain in preparation for setting up a manufacturing base in India.

Tata Electronics has invested $14 billion in its semiconductor manufacturing business. The company has joined hands with Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) to set up a semiconductor fab in Dholera, Gujarat. It is also installing factories in Hosur, near Bangalore and Assam.

Meanwhile, Elon Musk, CEO of Tesla, is due to visit India on April 21. He plans to meet PM Narendra Modi and we can expect to hear some major announcements during his visit.

Source: ET

Link to Team-BHP News

[PreludeSH]

Is it possible for Tesla to source chips, software etc and not establish a manufacturing plant ? They can show how much they are sourcing from India (or Gujarat ) and get exception from the govt.
Wish they could contract a design firm also and not just source from some kind of offshoring from Taiwanese firm.

[souravdas808]

Originally Posted by PreludeSH

Is it possible for Tesla to source chips, software etc and not establish a manufacturing plant ? They can show how much they are sourcing from India (or Gujarat ) and get exception from the govt.
Wish they could contract a design firm also and not just source from some kind of offshoring from Taiwanese firm.

It is Telsa's need to set up a plant here. After China, only India can give them economical advantage of building cars. Tesla wants to derisk their dependence on China just like Apple. Their India plant will be export oriented.

[PreludeSH]

Originally Posted by souravdas808

It is Telsa's need to set up a plant here. After China, only India can give them economical advantage of building cars. Tesla wants to derisk their dependence on China just like Apple. Their India plant will be export oriented.

South East Asian countries are better today for diversification in terms of resources for Silicon chips. Its the market in India, access to which has conditions imposed affecting pricing which is forcing companies to manufacture in India.

SE Asian countries also enjoy better cars from all makers. They dont manufacture better ones in India (for some companies its not the case) and we dont get access to those.

[souravdas808]

Originally Posted by PreludeSH

South East Asian countries are better today for diversification in terms of resources for Silicon chips. Its the market in India, access to which has conditions imposed affecting pricing which is forcing companies to manufacture in India.

SE Asian countries also enjoy better cars from all makers. They dont manufacture better ones in India (for some companies its not the case) and we dont get access to those.

Not true. Things are changing rapidly. India is becoming competitive. ASEAN countries don't export much cars, we are one of the top exporters. Apple chose India for diversification, not South East Asia.