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Apple is reportedly in early talks to move parts of iPhone chip assembly and packaging to India, a significant step as the company broadens its manufacturing footprint outside China. Sources say initial work could focus on display-related chips at a new outsourced semiconductor assembly and test (OSAT) facility in Gujarat.
Why India is suddenly a priority for Apple
Imagine the scale: Apple has steadily shifted production to India for finished iPhones, and now it's looking at deeper parts of the supply chain. The reasons are familiar — diversification, geopolitical risk management, and local incentives — but the implications are bigger. Assembling or packaging chips locally would strengthen supply resilience and potentially speed up logistics for regional markets.
Over the past few years, Apple has expanded production in India. For example, the entire iPhone 17 lineup destined for the US market is reportedly manufactured there. Adding chip assembly would be the next step in turning India into a more complete manufacturing hub.
Who's in the conversation and which chips are targeted?
Reports name CG Semi as one of the companies Apple has already approached. CG Semi is building an OSAT facility in Gujarat that could initially handle display-related chips. Apple has never assembled or packaged chips in India before, so any partnership would require local facilities to meet Apple’s high standards for quality and reliability.
Currently, Apple sources display driver integrated circuits (DDICs) and similar components from suppliers like Samsung, Himax, LX Semicon, and Novatek — firms operating fabs and packaging lines in South Korea, Taiwan, and China. Bringing assembly and packaging closer to final product lines could change those dynamics.
What this could mean for the supply chain and local industry
If talks progress, India could see a faster build-out of advanced packaging capabilities and OSAT services. That would create jobs, attract more semiconductor investment, and help local suppliers upgrade to the stringent reliability standards Apple demands. For consumers, it may translate into more resilient delivery timelines and less exposure to single-country bottlenecks.
- Potential benefits: supply-chain diversification, faster turnaround, local jobs, and tech ecosystem growth.
- Challenges: meeting Apple’s quality thresholds, scaling advanced packaging technologies, and ensuring steady component supply.
- Timeline: Still unclear — these are early discussions and any real production shift would take time.
Apple is also reportedly talking with other manufacturers beyond CG Semi, so the final picture may involve multiple partners and phased rollouts. For now, the story is a reminder: the semiconductor supply chain is evolving fast, and India is becoming a key player in that transformation.
Source: gsmarena
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