Apple is reportedly engaging in discussions with Indian semiconductor companies regarding the assembly and packaging of iPhone components. The Cupertino-based company has initiated preliminary talks with select semiconductor firms in India to explore this potential collaboration.
This move signifies Apple’s consideration of assembling and packaging certain chips in India for the first time, which could enhance the country’s involvement in Apple’s global supply chain. India currently plays a significant role as a manufacturing hub for iPhones, generating around 350,000 direct and indirect jobs.
The discussions reportedly involve CG Semi, a company within the Murugappa Group, which is establishing an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. Although the specific iPhone chips that may be packaged at this facility are not yet clear, they are likely related to display technology.
However, Apple maintains stringent quality control standards in its supply chain, making it challenging for CG Semi or any other Indian semiconductor company to secure approval. A source familiar with the matter mentioned, “Apple collaborates with various firms across its supply chain, but only a select few ultimately become approved suppliers.”
Apple declined to comment on these discussions, while CG Semi refrained from addressing market speculations. Nonetheless, the Indian company expressed readiness to provide updates when there are concrete developments to share.
According to the report, Apple currently procures iPhone display panels from global OLED manufacturers like Samsung Display, LG Display, and BOE. The suppliers of display driver integrated circuits (DDIC) – Samsung, Novatek, Himax, and LX Semicon – primarily operate manufacturing and packaging facilities in South Korea, Taiwan, and China.
Shifting towards assembling iPhone components in India would help Apple reduce its dependence, particularly on China. The company aims to manufacture most iPhones sold in the US in Indian facilities by the end of 2026 to mitigate the risk of high tariffs on Chinese imports imposed by the Trump administration. In line with this strategy, the latest iPhone models, including the iPhone 17 series and iPhone Air, were produced in India starting from 2025.
If the plans to assemble iPhone chips in India materialize, it could significantly benefit India’s burgeoning semiconductor sector, which has seen increased activity through global partnerships. Intel, a prominent US company, recently partnered with Tata Electronics to explore local manufacturing and packaging of Intel products at Tata’s upcoming $14 billion facilities.