Apple is in early discussions with semiconductor manufacturers in India about assembling and packaging components for its iPhone range, marking a potential landmark move in the company’s supply chain strategy, Reuters reports.
This is the first time Apple is publicly known to be considering such operations in India, and it could signal a deeper shift in how the tech giant sources and produces key parts for its flagship device.
The talks involve CG Semi, a unit of India’s Murugappa Group, which is building a new outsourced semiconductor assembly and test facility in Sanand, Gujarat. Local industry sources familiar with the matter say the discussions are in very early stages and that it is not yet clear which specific chips might be assembled at the facility.
If a collaboration goes forward, it would be a first for Apple in India because the company has historically kept chip assembly and packaging operations in East Asia where its existing suppliers are concentrated. Display panels and related driver integrated circuits for Apple iPhones are currently sourced from major manufacturers such as Samsung Display, LG Display and BOE, with packaging and backend work done in countries like South Korea, Taiwan and China.
India’s semiconductor manufacturing ecosystem has been gaining momentum in recent years, supported by government initiatives aimed at attracting global technology companies. The new semiconductor assembly and test plant being built by CG Semi represents one of the earliest facilities expected to handle such work on Indian soil.
The move is widely seen as part of Apple’s broader effort to diversify its global supply chain beyond China. India has lately become a central piece of that plan after Apple expanded device assembly in the country, with manufacturers like Foxconn, Tata Electronics and Pegatron increasing local iPhone production.
U.S. tariff policies have at times also imposed steep duties on Chinese goods, while Indian export tariffs are comparatively lower, making local production attractive for Apple’s export plans.
Apple’s goal is to produce the majority of iPhones sold in the United States at Indian factories by the end of 2026, a strategy that helps mitigate regulatory and tariff pressures in key export markets.
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