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Apple Explores India for iPhone Chip Assembly as Manufacturing Push Accelerates

Apple Explores India for iPhone Chip Assembly as Manufacturing Push Accelerates. Source: dronepicr, CC BY 2.0, via Wikimedia Commons

Apple Inc. (NASDAQ: AAPL) is reportedly in early-stage discussions with Indian semiconductor companies to explore the assembly and packaging of iPhone components in India, marking a potential shift in the company’s global supply chain strategy. According to a report by The Economic Times, Apple has held preliminary talks with CG Semi, a firm that is currently developing an outsourced semiconductor assembly and test (OSAT) facility in Gujarat. Sources familiar with the matter said the discussions remain at an initial level, with no final decisions yet made.

If implemented, this would represent the first time Apple considers chip assembly and packaging operations in India, highlighting the country’s rapidly growing role as a key manufacturing hub for the iPhone maker. Apple already assembles several iPhone models in India through manufacturing partners such as Foxconn, Pegatron, and Tata Group, significantly expanding local production over the past few years.

The move aligns with Apple’s broader efforts to diversify its supply chain amid rising geopolitical risks and ongoing U.S.-China trade tensions. While Apple continues to source most of its advanced chips from Taiwan Semiconductor Manufacturing Company (NYSE: TSM), exploring alternative locations for chip-related processes could help reduce dependency on a single region and strengthen supply resilience.

For India, any shift toward semiconductor assembly and packaging would be a major boost to its long-term chip ambitions. The Narendra Modi-led government has been actively promoting domestic semiconductor manufacturing through policy incentives and infrastructure development, aiming to position India as a global electronics and chip manufacturing destination.

Although full-scale chip manufacturing remains a complex and capital-intensive process, assembly and testing are seen as critical entry points for countries looking to build semiconductor ecosystems. Apple’s interest, even at an exploratory stage, underscores India’s growing strategic importance in global electronics manufacturing.

As Apple continues to expand iPhone production in India, potential collaboration with Indian chipmakers could further accelerate the country’s emergence as a vital link in Apple’s global supply chain while supporting India’s push to become a semiconductor powerhouse.

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