Apple Explores iPhone Chip Packaging in India for the First Time

[MacRumors]

Apple is in talks with suppliers to manage iPhone chip assembly and packaging in India for the first time, reports The Economic Times.

"Exploratory conversations" are said to have taken place with semiconductor company CG Semi, which is constructing one of India's first outsourced semiconductor assembly and test (OSAT) facilities in Sanand, Gujarat.

From the report, citing people with knowledge of the matter:

"The companies are in the very initial stages of discussion," one of them said. "It is not clear what chips will be packaged out of the Sanand facility at this stage, but it will likely be display chips."

The person added that this may be the "beginning of an uphill climb" for CG Semi since if talks progress, it will have to pass Apple's stringent quality standards to clinch the deal. "Apple is already in talks with several companies for a number of other supply chain functions, and very few will end up on their supplier list," the person said.

As the report mentions, Apple sources its iPhone display panels from the world's three leading OLED manufacturers: Samsung Display, LG Display, and BOE. The display driver ICs used with these panels are supplied by companies such as Samsung, Novatek, Himax, and LX Semicon, which in turn rely mainly on chip fabrication and packaging facilities in South Korea, Taiwan, and China.

If the discussions between Apple and CG Semi bear fruit, the move would be another example of Apple pivoting to India as a major supply chain and manufacturing hub. Apple reportedly assembled $22 billion worth of iPhones in India during the 12 months ending in March 2025, a nearly 60% increase over the previous year. Foxconn, Tata Electronics, and Pegatron now operate facilities in India focused on ‌iPhone‌ manufacturing. Apple is apparently aiming to manufacture the majority of iPhones sold in the United States in India by the end of 2026.

Article Link: Apple Explores iPhone Chip Packaging in India for the First Time

 

[ForkHandles]

India is all about quid pro quo.

Well done to them for making Apple pay to access a market of 1,429,000,000 people.

 

[Nyx1]

Where the money 600 million dollar for US manufacturing

 

[Plutonius]

India is all about quid pro quo.

Well done to them for making Apple Pay to access a market of 1,429,000,000 people.

We will see if anything comes from this seeing that they are only in the discussion phase.

I personally think that Apple is just using this to put pressure on their existing vendors in South Korea, Taiwan, and China.

 

[Skimac]

Another country that’s gone have access to apple and than make they own like china did lol.

 

[Ramchi]

India is all about quid pro quo.

Well done to them for making Apple Pay to access a market of 1,429,000,000 people.

Apple Pay is an unnecessary one for the vendors in India who use QR Code for Contactless transactions through UPI gateway using multiple Apps like GPay (Google Pay), BHIP, PayTM, PhonePhe etc…

Though this thread is about Chip Packaging, it is inevitable for everyone to slowly explore options outside one country. India may not match China on many counts but India honours the IP Rights and do not copy the technologies. India adheres to the international IP Rights unlike few other countries which are using the tech and copy them.

 

[pbau]

Great, now even the chip quality will go down

 

[MacMan988]

They have lot of ammonia

 

[jooish]

It's truly disgusting that when it comes to manufacturing that Apple's choices are basically anywhere but their home country. You're telling me the poors of India, China and Mexico are superior to the poors of North America? I just don't buy it. We have a serious problem here and it's obviously the regulations.

 

[svish]

Great to see Apple is having plans in making iPhone chips in India. Hopefully it will take off and the first parts will be available in the next few years.