Apple is taking another step toward deeper manufacturing roots in India. The company is reportedly in early talks to move iPhone chip assembly and packaging to the country for the first time. The discussions remain exploratory, but they point to a wider shift in Apple’s global supply chain.
Early talks with an Indian chip firm
Apple is in preliminary conversations with CG Semi, an Indian semiconductor company building one of the country’s first large outsourced semiconductor assembly and test facilities. The plant is located in Sanand, Gujarat. If the talks move forward, CG Semi would handle assembly and packaging for certain future iPhone chips.
According to The Economic Times, the discussions are still at a very early stage. One person familiar with the matter said, “The companies are in the very initial stages of discussion.” The same source added that it is not yet clear which chips would be handled at the Sanand facility, though display-related chips appear most likely.
Why display chips matter
Apple sources iPhone OLED panels from major suppliers such as Samsung Display, LG Display, and BOE. These displays rely on driver chips supplied by firms including Samsung, Novatek, Himax, and LX Semicon. Today, most of these chips get packaged outside India, mainly in South Korea, Taiwan, and China.
A local packaging option would reduce Apple’s dependence on those regions and bring one more part of the iPhone supply chain closer to India.
High standards and government backing
Even if talks progress, CG Semi faces a tough road. One source warned this could be “the beginning of an uphill climb,” noting Apple’s strict quality requirements. Apple often speaks with many suppliers, but only a few make the final cut.
CG Semi does have strong support. Its ₹7,600 crore OSAT project has backing from both central and state governments under the India Semiconductor Mission, which aims to build local chip and display manufacturing.
India’s growing role at Apple
India already plays a major role in iPhone production.
- Apple assembled about $22 billion worth of iPhones in India in the year ending March 2025
- Foxconn, Tata Electronics, and Pegatron now operate iPhone facilities in the country
- Apple plans to build most iPhones sold in the US in India by 2026
If chip packaging joins that list, India’s position in Apple’s supply chain will grow even stronger.
