If the agreement is finalized, Kaynes Semicon would be responsible for assembling and processing imported wafers to create these chips. Currently, Ola Electric relies on US-based Qualcomm for its chip supply. Raghu Panicker, CEO of Kaynes Technology, has confirmed ongoing talks with Ola Electric's CEO and cofounder Bhavish Aggarwal, as well as other automotive OEMs, regarding semiconductor manufacturing. Both companies have been approached for comments, and updates will be provided as they become available.

This potential collaboration aligns with Aggarwal's broader strategy to minimize dependence on foreign suppliers. Recently, he criticized Microsoft-owned LinkedIn for removing his post on "pronoun illness" and announced Ola’s transition from Microsoft Azure to Krutrim AI for cloud services. Furthermore, Ola Electric has replaced Google Maps with its in-house Ola Maps, launched with the Move OS 4 software platform for its electric two-wheelers. Simultaneously, Kaynes Semicon is investing INR 5,000 Cr to set up an outsourced semiconductor assembly and testing (OSAT) facility in Sanand, Gujarat, partnering with global companies such as Globetronics, Aptos Tech, Mixx Tech, and A0I. This initiative is part of India's broader effort to enhance its semiconductor industry, supported by the government's INR 76,000 Cr Semicon India programme and the recent approval of a semiconductor fab by the Tata Group and PSMC, aiming to establish the country as a key player in the global semiconductor market.