Apple Explores iPhone Chip Assembly in India, Further Reducing Dependence on China

Apple Inc. is reportedly fast-tracking its strategic shift away from China. The tech giant is said to be in preliminary discussions with Indian chipmakers about assembling and packaging iPhone components. This development would signify the first time Apple has explored chip-level manufacturing in India.

As reported by the Economic Times, Apple has initiated talks with CG Semi, a subsidiary of India’s Murugappa Group. CG Semi is in the process of building an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. Although it’s still uncertain which specific chips would be packaged at the Gujarat facility, display-related chips are the most probable contenders.

Industry analysts view this as a substantial strategic shift for Apple. The company is delving beyond device assembly to deeper stages of the semiconductor supply chain. While Apple already assembles iPhones in India through contract manufacturers like Foxconn and Tata Electronics, chip-level work has been confined to China and Taiwan until now.

The timing of this move is not coincidental. Apple aims to manufacture most iPhones sold in the United States at Indian factories by the end of 2026. This goal is part of a broader strategy to mitigate exposure to Chinese tariff risks. Earlier this year, the U.S. imposed a 26% duty on Indian imports, which is significantly lower than the 100%+ tariffs on Chinese goods. This makes India an increasingly appealing alternative for Apple’s global supply chain.

Neither Apple nor CG Semi have officially confirmed these discussions. CG Semi has stated that it does not comment on market speculation and will “make appropriate disclosures as and when there is something concrete to share.”

Source: Seeking Alpha – Apple discusses assembling, packaging iPhone components with Indian chipmakers