Apple has begun early exploratory discussions with Indian semiconductor companies to assemble and package iPhone components, marking the first time the technology giant has considered this part of its chip supply chain in India. According to the Economic Times, the talks signal a potential deepening of Apple’s manufacturing footprint in the country as it looks beyond final device assembly to more value-added semiconductor processes.
Sources cited by the report said the discussions are currently “in the very initial stages”, with no formal agreement in place. The conversations involve CG SEMI Private Limited, a Murugappa Group-owned company that is in the process of setting up an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. At this stage, display-related chips are believed to be the most likely candidates for potential assembly and packaging work.
While neither side has confirmed any deal, CG Semi responded cautiously to the reports. “We do not comment on market speculation or talks with specific customers. We will make appropriate disclosures as and when there is something concrete to share,” the company told ET. Apple has also not issued any official statement on the matter.
Industry analysts view the exploratory talks as strategically significant, even at this early stage. If discussions progress into a formal partnership, it would represent a major step up the value chain for Indian electronics and semiconductor suppliers. Until now, Apple’s India operations have largely focused on assembling finished iPhones, primarily through partners such as Foxconn and Tata Electronics. Chip assembly and packaging would add a new layer of sophistication to India’s role in Apple’s global supply network.
The move also aligns with Apple’s broader efforts to diversify its manufacturing base and reduce reliance on a single geography. As geopolitical and supply chain risks continue to influence global technology manufacturing, Apple has been steadily expanding production capacity in India. Analysts note that the company is targeting a scenario where the majority of iPhones sold in the United States are manufactured in India by the end of 2026.
For India, a potential Apple engagement in semiconductor assembly would complement the government’s push to build a domestic chip ecosystem, supported by incentives for fabrication, packaging, and testing facilities. While the talks remain preliminary, they underscore growing confidence in India’s capabilities beyond assembly and point to a gradual but meaningful shift in how global technology leaders view the country’s semiconductor ambitions.
