Apple is in talks with suppliers to handle iPhone chip assembly and packaging in India for the first time, according to reports from The Economic Times.
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The “exploratory talks” have reportedly taken place with semiconductor company CG Semi, which is building one of the first off-site semiconductor assembly and test (OSAT) facilities in India, in the Sanand, Gujarat.
From the report, which cited people familiar with the matter: “The companies are in the very early stages of discussions,” one of them said. “It is not clear what chips will be packaged by the Sanad facility at this stage, but they will likely be display chips.”
The person added that this could be the “beginning of an uphill battle” for CG Semi, as if the talks go ahead, it would have to pass Apple’s strict quality standards to close the deal. “Apple is already in talks with several companies for various other supply chain functions, and very few will end up on their supplier list,” the person said.
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As the report states, Apple sources its iPhone display panels from the world's top three OLED manufacturers: Samsung Display, LG Display, and BOE. The display driver ICs used with these panels are sourced from companies including Samsung, Novatek, Himax, and LX Semicon, which in turn rely primarily on chip manufacturing and packaging facilities in South Korea, Taiwan, and China.
If the talks between Apple and CG Semi come to fruition, the move would be another example of Apple’s shift to India as a major supply chain and manufacturing hub. Apple reportedly assembled $22 billion worth of iPhones in India in the 12 months ending March 2025, up nearly 60% from the previous year. Foxconn, Tata Electronics and Pegatron now operate facilities in India focused on iPhone manufacturing.
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Apple apparently aims to manufacture the majority of iPhones sold in the United States in India by the end of 2026.
