Apple in talks to package iPhone chips in India
What's the story
Apple has initiated preliminary discussions with select Indian semiconductor companies to explore the possibility of assembling and packaging iPhone chip components in India. The move, if successful, would mark Apple's first step toward localizing some chip production and packaging. Among the companies being considered is CG Semi, a Murugappa Group company that is setting up an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat.
Facility details
CG Semi's role in Apple's potential chip assembly
Display-related chips are considered the most likely candidates for this collaboration between Apple and CG Semi. The discussions are at a very preliminary stage, and any progress would depend on CG Semi meeting Apple's stringent quality and consistency benchmarks. "Apple is already engaging with multiple firms across different parts of its supply chain, but only a handful eventually make it onto the approved supplier list," an industry insider told The Economic Times.
Industry influence
Apple's potential impact on India's semiconductor ecosystem
If finalized, this arrangement could significantly boost India's rapidly evolving semiconductor ecosystem. The sector recently gained traction after US chipmaker Intel signed a deal with Tata Electronics to explore the manufacturing and packaging of Intel products for domestic markets at Tata's upcoming fabrication and OSAT facilities. The two companies are also exploring collaboration in advanced chip packaging, a key process that protects chip components and improves performance.
Strategic shift
Apple's sourcing and potential benefits of local chip manufacturing
Industry analysts have noted that Apple sources iPhone display panels from leading global OLED manufacturers such as Samsung Display, LG Display, and BOE. The display driver integrated circuit (DDIC) suppliers associated with these panels—Samsung, Novatek, Himax, and LX Semicon—largely depend on South Korean, Taiwanese, and Chinese facilities for chip manufacturing and packaging. "Apple could gain greater resilience and diversification by working with an Indian chip manufacturer," said Prabhu Ram, vice president at CyberMedia Research.
Project overview
CG Semi's OSAT project and future plans
CG Semi's ₹7,600-crore OSAT project is supported by the central and state government. It is being developed with Renesas and Stars Microelectronics. The investment, over five years, will establish two advanced facilities—G1 and G2. G1 was inaugurated on August 28 for end-to-end chip assembly, packaging testing, post-test services with a peak capacity of around 0.5 million units per day. Commercial production is expected to start in calendar year 2026 as per commitments under the India Semiconductor Mission.