Apple in preliminary discussions to package iPhone chips in India: Report

The discussions are still exploratory, and there is no clarity yet on the specific chips that could be handled at the Sanand plant, though display-related chips are seen as the most likely candidates.

Apple has begun early-stage discussions with select Indian semiconductor firms to explore the assembly and packaging of iPhone components, people familiar with the matter told The Economic Times. If these talks materialise, it would mark Apple’s first move towards having certain chips assembled and packaged in India, signalling a deeper integration of the country into its global supply chain.

Among the companies involved is CG Semi, part of the Murugappa Group, which is setting up an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, sources cited by The Economic Times said. The discussions are still exploratory, and there is no clarity yet on the specific chips that could be handled at the Sanand plant, though display-related chips are seen as the most likely candidates.

One of the people quoted by The Economic Times noted that the conversations are at a very preliminary stage. Any progress, they added, would require CG Semi to meet Apple’s demanding quality and consistency benchmarks. “Apple is already engaging with multiple firms across different parts of its supply chain, but only a handful eventually make it onto the approved supplier list,” the person said.

Apple did not respond to queries from The Economic Times. CG Semi, meanwhile, said it does not comment on market speculation or discussions with individual customers, adding that disclosures would be made when there is something concrete to share.

If finalised, such an arrangement would be a notable boost for India’s fast-evolving semiconductor ecosystem. The Economic Times noted that the sector recently gained momentum after US chipmaker Intel signed an agreement with Tata Electronics on December 8 to explore manufacturing and packaging Intel products for domestic markets at Tata’s upcoming fabrication and OSAT facilities. The two companies are also evaluating collaboration in advanced chip packaging, a crucial process that safeguards chip components and enhances performance.

Industry analysts told The Economic Times that Apple sources iPhone display panels from leading global OLED manufacturers such as Samsung Display, LG Display and BOE. The display driver integrated circuit (DDIC) suppliers linked to these panels—Samsung, Novatek, Himax and LX Semicon—largely rely on facilities in South Korea, Taiwan and China for chip manufacturing and packaging.

“As India strengthens its position as a key node in the global electronics supply chain, Apple could gain greater resilience and diversification by working with an Indian chip manufacturer,” Prabhu Ram, vice president at CyberMedia Research, told The Economic Times. He added that CG Semi’s biggest challenge, and opportunity, would be achieving Apple’s stringent quality standards, ensuring stable yields and building OSAT expertise at scale.

CG Semi’s Rs 7,600-crore OSAT project is backed by both central and state government support and is being developed in partnership with Renesas and Stars Microelectronics. The investment, spread over five years, will fund two advanced facilities—G1 and G2. G1, inaugurated on August 28, is designed for end-to-end chip assembly, packaging, testing and post-test services, with a peak capacity of around 0.5 million units per day. The company has said commercial production is expected to begin in calendar year 2026, in line with commitments under the India Semiconductor Mission, The Economic Times reported.