By CIO Insider Team
 

Apple is in early discussions with Indian chipmakers to assemble and package components for the iPhone, according to reports.

It is said to be the first time Apple has considered assembling and packaging some chips in India, adding that it is unclear which chips will be packaged at the Sanand facility, though they are likely display chips.

Apple held talks with Murugappa Group-owned CG Semi, which is building an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, the reports say.

Apple has been aiming to make most of its iPhones sold in the United States at factories in India by the end of 2026 and is speeding up those plans to navigate potentially higher tariffs in China, its main manufacturing base, according to reports.

In April, the US administration imposed 26 percent duties on imports from India, far lower than the more than 100 percent levied on Chinese goods at the time. Washington has since paused most duties for three months, except those on China.

The move, if finalized, would mark significant expansion of in India, going beyond final device assembly into the semiconductor value chain.

Industry experts say chip assembly and packaging is a critical step that can help India strengthen its position in the global electronics supply ecosystem, while also reducing Apple’s reliance on China-based suppliers.

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India has been actively courting global chipmakers with production-linked incentives and infrastructure support, positioning itself as an alternative hub for electronics manufacturing.

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Apple’s engagement with local OSAT players aligns with New Delhi’s broader push to develop domestic semiconductor capabilities and attract high value investments from multinational technology firms.