Apple is reportedly considering a major expansion of its supply chain in India, with new discussions suggesting that iPhone chips could soon be assembled and packaged locally.
According to a recent report, the company is in early-stage talks with Indian semiconductor firms to explore this possibility, marking a significant shift in Apple’s long-standing manufacturing strategy.
Sources claim Apple has already held discussions with CG Semi, a company currently developing an outsourced semiconductor assembly and test (OSAT) facility in Gujarat. While Apple has never previously assembled or packaged chips in India, the report indicates that this facility could serve as a starting point, initially focusing on display-related chips rather than core processors.
If negotiations progress, CG Semi would be required to meet Apple’s strict quality, reliability, and performance standards. Apple is known for its demanding supply chain requirements, meaning any partnership would undergo extensive evaluation before becoming operational. In addition to CG Semi, Apple is reportedly in conversations with other semiconductor firms as it assesses multiple options.
At present, Apple sources its display driver integrated circuits (DDICs) from established suppliers including Samsung, Himax, LX Semicon, and Novatek. These companies operate manufacturing facilities primarily in South Korea, Taiwan, and China, regions that have traditionally dominated Apple’s chip supply ecosystem.
Moving chip assembly and packaging to India would align with Apple’s broader efforts to diversify its manufacturing base and reduce dependence on a single region. Over the past several years, India has emerged as a critical hub for Apple’s hardware production, supported by government incentives and a rapidly growing electronics manufacturing sector.
The shift is already evident in iPhone production. According to recent reports, the entire iPhone 17 lineup for the US market is now manufactured in India, underscoring Apple’s confidence in the country’s manufacturing capabilities. Expanding into chip assembly would represent the next phase of this strategy.
If implemented, local chip packaging could strengthen India’s semiconductor ecosystem while giving Apple greater supply chain resilience and long-term operational flexibility.