Apple is reportedly in preliminary talks with Indian companies to not just assemble the iPhone itself, but to assemble and package the actual chips that power it. This marks a massive potential shift, taking India from a final assembly hub to a key player in the semiconductor supply chain.
According to Economic Times, the Cupertino giant has opened discussions with CG Semi, a subsidiary of the Chennai-based Murugappa Group. CG Semi is currently constructing a state-of-the-art Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. While the talks are still in the early stages, industry insiders suggest that the initial focus could be on packaging display-related chips—specifically the drivers that control your iPhone’s screen.
Currently, components like Display Driver ICs are largely sourced and packaged in South Korea, Taiwan, or China. By bringing this process to India, Apple isn’t just cutting costs; they are building a more resilient, diversified supply chain that is less dependent on any single region.
Apple is legendary for its stringent quality controls, and any domestic firm will have to prove they can meet these high standards at scale. However, the ecosystem is already maturing rapidly. Recently, Tata Electronics signed a deal with Intel to explore similar semiconductor manufacturing, demonstrating that Indian conglomerates are ready to compete in the global market. With CG Semi’s facility expected to kick off commercial production around 2026, the timing aligns perfectly with Apple’s broader goals.
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