Tesla is preparing to launch electric vehicles in India, with shipments expected to arrive at a port near Mumbai soon, and sales projected to begin in major cities by the third quarter of 2025.

Discussions held about six weeks ago focused on the types of chips Tesla needs and the timelines for ramping up production.

Industry experts predict a double-digit growth in Tesla's demand for semiconductors, particularly in the 28-65 nm node range, which is essential for electric vehicle components.

Tesla is actively exploring procurement options for semiconductor chips in India, engaging with companies like Micron and CG Semi to diversify its supply chain.

Elon Musk has indicated plans to visit India this year, underscoring the country's significance in Tesla's strategic framework.

Micron is set to establish an assembly and test manufacturing facility in Gujarat, aiming to serve both domestic and international markets.

This strategic pivot comes in response to global chip shortages and geopolitical tensions that have disrupted traditional supply chains.

India's semiconductor sector is poised to benefit from the realignment of global supply chains, particularly as companies seek alternatives to China.

CG Semi is developing an outsourced semiconductor assembly and test (OSAT) facility, initially serving Renesas Electronics but expected to expand its client base.

The investment landscape is robust, with CG Semi's OSAT facility in Sanand costing Rs 7,600 crore, while Micron's facility is projected to exceed Rs 23,000 crore.

As Tesla increases its engagement with India's semiconductor industry, it may encourage other global companies, like Apple, to invest in the region.

Partnerships with global leaders like Tesla are crucial for India's semiconductor ambitions, helping to mitigate operational disruptions.