Apple in Talks with Indian Chipmakers for iPhone Component Assembly in Gujarat
Apple Inc. is reportedly in preliminary discussions with Indian semiconductor companies to assemble and package components for the iPhone. This move could potentially mark a historic shift in Apple’s supply chain strategy. The information was initially reported by The Economic Times, citing sources familiar with the matter. The tech giant is said to have held talks with CG Semi, a Murugappa Group company, which is in the process of constructing an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat.
The specific components to be handled at the proposed facility have not been disclosed yet. However, it is speculated that the display driver chips — the components responsible for controlling how screens display images, text, and video — are likely to be assembled and packaged there. If these discussions prove successful, it would be the first instance of Apple assembling and packaging chips in India, a significant step beyond the device assembly currently undertaken by partners such as Foxconn, Wistron, and Tata Electronics.
This initiative is part of Apple’s larger objective to decrease its reliance on China, especially in light of the ongoing tariff pressures. With the U.S. imposing a 26% duty on Indian imports — a rate significantly lower than the 100%+ tariffs on Chinese goods — India is emerging as an increasingly attractive manufacturing hub. Apple’s goal is to manufacture the majority of its US-bound iPhones in India by the end of 2026, and these new chip-packaging discussions represent a substantial progression in that direction.
Source: Seeking Alpha – Apple discusses assembling, packaging iPhone components with Indian chipmakers