US-based electric vehicle (EV) manufacturer Tesla has signed a deal with India’s Tata Electronics to procure semiconductor chips for global operations, as reported by The Economic Times.
The deal was executed discreetly a few months ago.
According to earlier media reports, Tesla is considering the possibility of a joint venture with Reliance to construct manufacturing facilities in India.
It has earmarked US$2 billion (S$2.73 billion) for upcoming ventures and has been exploring locations, including the Indian states of Gujarat and Maharashtra.
The Indian government approved an EV policy that mandates a minimum investment of US$500 million (S$680 million) with no maximum investment limit.
Last month, Tata Electronics announced that it will set up India’s first semiconductor fab in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC).
The facility will come up with an investment of US$11 billion (S$14.80 billion)
According to Tata, the plant will have a capacity of 50,000 wafers per month.
Once the plant reaches full capacity, 48 million chips per day will be produced from the unit, it added.
