Apple Explores iPhone Chip Packaging in India for the First Time

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.