Apple in Talks with Indian Manufacturers for Assembling iPhone Chips

Apple is holding early discussions with Indian manufacturers to assemble and package chips for its iPhone devices, marking a potential expansion of the tech giant's local manufacturing footprint beyond final assembly.

According to The Economic Times, Apple has initiated talks with a Gujarat-based facility to package the chips, though it is unclear which specific components will be handled there.

The talks were held with Murugappa Group-owned CG Semi, which is building an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, who will likely handle the display-related chips for Apple.

Meanwhile, Moneycontrol reported on the matter, citing industry sources, who have claimed that the conversations are preliminary and exploratory, and any concrete agreement would require CG Semi to meet Apple’s exacting quality standards and approval processes, a significant hurdle given the company’s stringent supplier requirements.

This move fits into a wider strategic shift by Apple to diversify its global supply chain and reduce reliance on China amid heightened trade tensions and tariff pressures.

Earlier this year, Apple set goal to produce most of the iPhones it sells in the United States at its Indian facilities by the end of 2026, accelerating the transition in response to escalating tariffs on Chinese-made goods, according a Reuters report.

India has already become a manufacturing hub for Apple as iPhone production in the country surged sharply in 2025, with exports to overseas markets, particularly the US, growing robustly as the company ramps up local output.

A Times of India report noted that annual iPhone production in India could increase to 70-80 million units by late 2026, potentially making India a primary supplier for American demand.

Notably, the government's support for semiconductor investments has helped attract major projects to Gujarat, including Micron’s $2.75 billion assembly and packaging plant in Sanand and Tata Electronics' large-scale semiconductor fabrication plant (Fab) across the state.