Apple in Preliminary Talks to Assemble iPhone Chips in India [Report]

Apple has opened preliminary discussions with chip manufacturers in India to handle the assembly and packaging of iPhone components, marking a potential shift up the value chain for the company's operations in the region.



Exploratory conversations have reportedly taken place with Murugappa Group-owned CG Semi, according to the Economic Times. The company is currently constructing an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. This would represent the first time Apple has evaluated using Indian partners for chip assembly and packaging, moving beyond the final device assembly it already performs in the country.


Sources say the talks are still in the early stages but are expected to focus on display driver chips. Apple currently relies heavily on partners in South Korea, Taiwan, and China for packaging these components. However, securing a deal will depend on whether the local facility can pass Apple's notoriously stringent quality standards.

CG Semi is investing roughly $900 million to develop the facility in collaboration with Renesas and Stars Microelectronics, with commercial production targeted for 2026. A partnership would further deepen Apple's manufacturing footprint in India, where it has already been ramping up production for devices like AirPods and iPhones to diversify its global supply chain.

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