Apple has begun early stage discussions with Indian semiconductor firms on the possibility of assembling and packaging components for its iPhone devices, according to people familiar with the matter. If these talks lead to a formal agreement, it would be the first instance of Apple considering such chip related work in India, and could represent a notable expansion of the country’s role in the tech giant’s global supply chain.
The conversations involve Murugappa Group owned CG Semi, which is constructing an outsourced semiconductor assembly and test facility in Sanand in the western state of Gujarat. This facility is expected to support advanced packaging and testing operations, though it is not yet clear which specific components would be assembled or packaged if a deal moves forward. Observers say display related chips are seen as likely candidates, given the complex manufacturing and quality requirements involved.
People involved in the discussions described the talks as being at a very preliminary stage, with no firm commitments made by either Apple or the Indian companies. CG Semi has declined to comment on market speculation or specific negotiations, stating that it will make appropriate disclosures only if there is concrete progress. Apple also did not publicly respond to requests for comment on the ongoing discussions.
If the talks result in a formal agreement, it would add a new layer to Apple’s expanding manufacturing footprint in India. The company has steadily increased local assembly of iPhone models in recent years through partners such as Foxconn, Pegatron and Tata Group firms. India has become an important manufacturing base for Apple, particularly for devices bound for global markets, as the company seeks to diversify production beyond its traditional reliance on China.
The potential move also aligns with broader efforts by Apple to navigate trade and tariff pressures affecting its supply chain. In recent years, rising import duties and geopolitical tensions have prompted the company to explore manufacturing options outside China. India’s more favourable tariff regime for exports to the United States, relative to China, has been a factor in Apple’s accelerated shift of production to Indian facilities.
Industry analysts say that establishing assembly and packaging operations within India could strengthen the resilience of Apple’s supply chain by reducing reliance on East Asian semiconductor hubs. Apple currently sources the majority of its chips from Taiwan Semiconductor Manufacturing Company for main processors, while other components are produced and packaged in specialised facilities primarily in Taiwan, South Korea and China. Any addition of Indian based chip assembly or packaging would represent a meaningful step forward in diversifying this landscape.
India’s semiconductor ecosystem has been attracting attention from global technology companies and governments, driven by large scale public and private investments. The Indian government’s efforts under initiatives such as the India Semiconductor Mission aim to build local design, fabrication, assembly and testing capabilities. These initiatives have already led to several high profile partnerships and projects aimed at boosting the country’s chip making infrastructure and skilled workforce.
Local industry participants view the preliminary talks with Apple as significant for the domestic semiconductor segment. A successful partnership could elevate India’s position in the global electronics value chain, creating opportunities for other domestic vendors and suppliers to participate in advanced manufacturing. The outlook for such growth has driven interest from multinational firms seeking alternatives to established hubs in East Asia.
However, multiple challenges lie ahead if formal agreements are to be finalised. Apple’s quality and consistency standards are known to be exacting, and prospective partners would need to meet these benchmarks to secure a long term business relationship. Analysts suggest that only a small fraction of companies engaged in supply chain negotiations with Apple ultimately become approved suppliers, reflecting the high bar for technical capability and process excellence.
CG Semi’s ongoing project in Gujarat is backed by substantial investment and government support, aimed at positioning the facility as a competitive player in the outsourced semiconductor assembly and test segment. The company has outlined plans for end to end assembly, packaging and testing services at scale, though full commercial production timelines remain subject to market and regulatory conditions.
India’s growing importance in Apple’s production strategy is also evident from export figures and manufacturing targets. The company has previously stated its intention to produce the majority of iPhones sold in the United States at Indian facilities by the end of 2026. Achieving this goal would further solidify India’s status as a significant manufacturing hub for one of the world’s most valuable technology firms.
Experts caution that while the initial talks are promising for India’s semiconductor ambitions, the road to operationalising chip assembly and packaging locally is likely to be gradual. It will require sustained collaboration between private industry, global technology partners and government agencies to scale capabilities sufficiently. Nonetheless, the exploratory discussions with Apple are being closely watched as a potential turning point for the country’s role in high end electronics manufacturing.