Apple in Early Talks with Indian Chipmakers to Assemble iPhone Chips

Apple has begun early discussions with Indian chipmakers to assemble and package components for its iPhone, the Economic Times reported, citing sources. The talks involved Murugappa Group-owned CG Semi, which is building an outsourced semiconductor assembly and test facility in Sanand, Gujarat. 

The exploratory talks are the first time Apple has considered assembling and packaging some chips in India, and the discussions are in early stages with no firm agreement yet. Reports said Apple’s talks with CG Semi are “in the very initial stages”. While it is not yet clear “what chips will be packaged out of the Sanand facility at this stage, it will likely be display chips”. 

Meanwhile, CG Semi told ET it does not comment on market speculation or talks with specific customers. “We will make appropriate disclosures as and when there is something concrete to share,” the company said. 

If a deal goes ahead, it could represent a step up in the value chain for Indian vendors supplying Apple products. The country’s semiconductor industry has recently seen activity, including a pact between US chipmaker Intel and Tata to explore the manufacturing and packaging of Intel products locally. 

Analysts say Apple could benefit from a broader supplier base as it seeks to diversify manufacturing locations. However, any progress will depend on meeting Apple’s quality requirements. 

Apple has been expanding its manufacturing footprint in India for several years. The company has previously stated its aim to produce a majority of iPhones sold in the United States at Indian facilities by the end of 2026.