Exploring local chip assembly partnerships, Apple looks to deepen its manufacturing footprint and supply chain presence in India.
Apple is in preliminary discussions with Indian semiconductor manufacturers to assemble and package chips for the iPhone, signalling a potential shift towards higher value manufacturing in India.
Exploratory talks have taken place with Murugappa Group owned CG Semi, which is setting up an outsourced semiconductor assembly and test facility in Sanand, Gujarat, the sources said. If pursued, this would mark the first time Apple is evaluating the possibility of having certain chips assembled and packaged in India. The discussions are said to be at an early stage, with display related chips likely to be considered initially as reported by The Economic Times.
One of the people cautioned that any partnership would require CG Semi to clear Apple’s stringent quality and reliability standards. Apple is known to evaluate multiple suppliers across its supply chain, with only a limited number eventually qualifying. Apple did not respond to queries, while CG Semi said it does not comment on market speculation and would make disclosures if discussions materialise.
CG Semi is investing about ₹76 billion over five years to build two advanced facilities, G1 and G2, with support from the central and Gujarat governments. The project is being developed in collaboration with Renesas and Stars Microelectronics. G1, inaugurated in August, is designed to handle end to end chip assembly, packaging, testing and post test services, with a peak capacity of around 0.5 million units per day.
The facility is expected to begin commercial production in 2026 under commitments made to the India Semiconductor Mission, positioning India more firmly in Apple’s global supply chain.
