Tesla Set To Diversify Supply Chain By Making Tata Electronics For Semiconductor Chips.

Tesla has reportedly entered into a strategic agreement with Tata Electronics for the supply of semiconductor chips for its global operations, as per a report by Hindustan times..

What is Latest report on Tata Electronics?

This comes as Tata Electronics, which leads Tata group’s entry into semiconductor manufacturing, increased its workforce by recruiting top-level executives, as per the report. Tata Electronics has also established semiconductor manufacturing facilities in Hosur, Dholera and Assam and the company plans to expand operations. It has invested $14 billion in the business to date, the report added.

What we know about Elon Musk’s India visit?

Elon Musk confirmed his visit to India on April 21 and 22 during which he is set to meet PM Modi and make major announcements including the launch of the Starlink service in the country and plans to invest between $2 billion to $3 billion.

What is Tesla’s Future plan on the Supply chain of Semiconductor?

• In-house Development: Tesla has been increasingly focusing on developing its own proprietary technologies and components, including semiconductors. This aligns with Elon Musk’s preference for vertical integration and control over critical components.
• Partnerships and Contracts: While Tesla does develop some components in-house, it also relies on partnerships and contracts with semiconductor manufacturers to meet its demands. These partnerships may include agreements with companies like TSMC (Taiwan Semiconductor Manufacturing Company), Samsung, or other major players in the semiconductor industry.
• Supply Chain Challenges: Like many other automotive manufacturers, Tesla has faced challenges related to semiconductor shortages. These shortages have been attributed to various factors, including increased demand from the consumer electronics industry, disruptions caused by the COVID-19 pandemic, and supply chain complexities.

• Diversification Efforts: To mitigate risks associated with semiconductor shortages and supply chain disruptions, Tesla, like other companies, may be exploring strategies such as diversification of suppliers, strategic stockpiling of critical components, and potentially even further vertical integration into semiconductor manufacturing.
• Future Plans: Given the critical importance of semiconductors in modern automotive technology, it’s likely that Tesla will continue to invest in securing a stable and efficient semiconductor supply chain. This may involve further in-house development, strategic partnerships, and continuous monitoring and adaptation to market dynamics.