Apple Explores Chip Assembly in India Amid Manufacturing Expansion

Apple has begun early talks with Indian chipmakers to assemble and package components for the iPhone, according to the Economic Times, citing sources familiar with the matter. This marks the first time the technology giant has considered producing certain chips in India, although it remains unclear which components will be handled at the proposed facility. Reports suggest display-related chips are likely candidates.

The discussions involved CG Semi, an outsourced semiconductor assembly and test (OSAT) firm owned by the Murugappa Group, which is building a facility in Sanand, Gujarat. Apple’s move aligns with its broader strategy to expand iPhone production in India. Reuters could not independently confirm the Economic Times report, and neither Apple nor CG Semi immediately responded to requests for comment.

CG Semi told the newspaper that it does not comment on market speculation or discussions with specific customers, adding that it would make disclosures only when there is concrete information to share.

Apple has been accelerating its plans to manufacture a significant portion of iPhones sold in the United States at its Indian factories by the end of 2026. The company aims to reduce reliance on China, its primary manufacturing hub, and to avoid potential tariffs. In April, the US administration imposed 26 percent duties on imports from India, compared with more than 100 percent applied to Chinese goods at the time. Washington has since temporarily suspended most of the India-specific duties for three months, while duties on Chinese products remain in effect.

The proposed chip assembly in India represents a strategic step in Apple’s ongoing efforts to diversify its supply chain. By producing key components closer to its Indian iPhone plants, the company could improve efficiency and mitigate risks associated with geopolitical tensions and trade restrictions.

Industry analysts say Apple’s shift is part of a broader trend among technology companies seeking to reduce dependence on China and expand manufacturing capabilities in India. With its growing market and supportive government policies, India has become an attractive destination for high-tech manufacturing and semiconductor assembly.

Apple has previously worked with Indian partners on assembling iPhones and other devices. Adding chip production to the country could further strengthen India’s role in the global electronics supply chain, creating opportunities for domestic manufacturers and boosting local employment in the high-tech sector.

The company’s discussions with CG Semi come at a time when the global semiconductor industry is under pressure to expand production and reduce bottlenecks. Apple’s move could signal a broader shift toward more geographically diverse production networks, particularly for critical components such as chips, which are essential for smartphones and other electronic devices.