Apple Considers India for iPhone Chip Assembly in Unprecedented Supply Chain Shift
Apple Inc. (NASDAQ: AAPL) is reportedly in preliminary discussions with Indian semiconductor firms to assemble and package iPhone components. This move marks a significant strategic shift from China in Apple’s global supply chain, a first in the company’s history.
As reported by India’s Economic Times, Apple has initiated talks with CG Semi, a subsidiary of the Murugappa Group. CG Semi is in the process of establishing an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. Although the exact components to be packaged locally at the Gujarat plant have not been disclosed, display-related chips are speculated to be the most probable candidates.
This potential move signifies the first instance of Apple considering the assembly and packaging of chips within India. It extends Apple’s manufacturing relationship with India, which currently includes iPhone assembly by contract partners like Foxconn, Wistron, and Tata Electronics. In response to tariff pressures, Apple plans to manufacture most iPhones sold in the United States at Indian factories by the end of 2026. This is due to the U.S. imposing 26% duties on Indian imports, a significantly lower rate compared to the 100%+ levied on Chinese goods.
Neither Apple nor CG Semi have officially confirmed these discussions. However, this potential shift highlights India’s rapidly increasing significance as a global hub for high-value electronics manufacturing.