Tesla has inked a strategic deal with Tata Electronics to procure semiconductor chips for its global workings, as per media reports.
As per an Economic Times report, the agreement, executed some months ago, places Tata Electronics as a dependable supplier for prominent global clients aiming to establish a crucial segment of their semiconductor value chain in India.
Contours of the transaction pertaining to the value of the sourcing deal between Tata Electronics and Tesla, among other specific details were not disclosed.
Elon Musk is slated to visit Prime Minister Narendra Modi during his India visit this month and is expected to unveil potential investments in India, including commitments to EV manufacturing facilities. Neither Tesla or Tata Electronics, the head of the Tata group's semiconductor manufacturing initiative, offered any comments, the ET report said.
Recent reports have hinted at Tesla's interest in finding a local partner to establish its presence in India. Last week, reports emerged that the American EV giant is reportedly considering the possibility of a joint venture with Reliance to construct manufacturing facilities within the country, Mint noted.
Last month, the Indian government approved an Electric Vehicle (EV) policy aimed at positioning the country as a global manufacturing hub for EVs. The policy mandates a minimum investment of Rs 4,150 crore with no maximum investment limit aimed at attracting investments from reputable global EV manufacturers.