Apple Explores iPhone Chip Assembly and Packaging in India, Report Says

Highlights

• Apple is in early talks with Indian semiconductor firms to explore iPhone chip assembly and packaging locally.
• Display-related components like driver ICs are the most likely candidates, as Apple currently relies on suppliers in South Korea, Taiwan, and China for these.
• The plan aligns with Apple’s broader push to diversify production away from China.

Caption – (Photo by Alexander Schimmeck on Unsplash)

Apple is reportedly in early-stage discussions with Indian semiconductor firms to assemble and package certain iPhone components in the country. According to a report by The Economic Times on Wednesday, citing people familiar with the matter, this marks the first time Apple has considered chip assembly and packaging operations in India.

The report notes that while it is not yet clear which specific chips could be handled locally, display-related chips are the most likely candidates.

Apple has held talks with Murugappa Group-owned CG Semi, which is currently setting up an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat.

Responding to the report, CG Semi told The Economic Times that it does not comment on market speculation or discussions involving specific customers. “We will make appropriate disclosures as and when there is something concrete to share,” the company was quoted as saying.

The Economic Times reports highlights Apple sources its iPhone OLED panels from Samsung Display, LG Display, and BOE. Meanwhile, display driver integrated circuits (DDICs) are supplied by companies such as Samsung, Novatek, Himax, and LX Semicon, “which primarily depend on South Korean, Taiwanese or China-based units for getting chips manufactured and packaged.”

If the discussions lead to a formal agreement, it would further strengthen Apple’s growing manufacturing footprint in India. The country has increasingly become central to Apple’s strategy as it diversifies production away from China, with India already serving as a key assembly hub for iPhones.

The development also comes during a busy period for India’s semiconductor sector. Earlier this week, Intel announced a partnership with Tata Electronics, highlighting rising momentum in domestic chip manufacturing and packaging initiatives.

CG Semi’s planned ₹7,600 crore OSAT facility has backing from both central and state governments under the India Semiconductor Mission. The initiative aims to position India as a global hub for semiconductor and display manufacturing.

Apple has previously stated its intention to manufacture most iPhones sold in the United States at Indian facilities by the end of 2026. The company has accelerated these plans to mitigate risks linked to potential tariff increases in China, its primary manufacturing base. Reuters reported in April that the US administration imposed 26% import duties on goods from India, significantly lower than the more than 100% tariffs applied to Chinese imports at the time. While Washington has since paused most of these duties for three months, the higher tariffs on China remain in place.

FAQs

Q1. What is Apple exploring in India?

Answer. Apple is in early talks with Indian semiconductor firms to assemble and package iPhone components, marking its first such initiative in the country.

Q2. Which chips are most likely to be handled locally by Apple?

Answer. While specifics aren’t confirmed, display-related chips such as display driver ICs are the most likely candidates.

Q3. Why is Apple considering chip packaging in India?

Answer. The move would strengthen Apple’s manufacturing footprint in India, diversify production away from China, and align with India’s government-backed semiconductor mission amid global tariff pressures.

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