Apple is currently in discussions with suppliers to initiate iPhone chip assembly and packaging operations in India. The tech giant has engaged in preliminary talks with semiconductor company CG Semi, which is setting up one of India’s first outsourced semiconductor assembly and test facilities in Sanand, Gujarat. The discussions are in the early stages, and it’s uncertain which chips might be packaged at this site, though they are likely to be display chips. CG Semi faces the challenge of meeting Apple’s high-quality standards to secure a deal. Apple is also in negotiations with various companies for other supply chain roles, but only a select few will become official suppliers. The company currently sources its iPhone display panels from leading OLED producers like Samsung Display, LG Display, and BOE, with display driver ICs from firms such as Samsung and Novatek, which rely on facilities in South Korea, Taiwan, and China. Should Apple and CG Semi finalize an agreement, it would mark a significant shift towards India as a key manufacturing and supply chain hub. Apple has already assembled $22 billion worth of iPhones in India in the year ending March 2025, marking a 60% increase from the previous year. With facilities operated by Foxconn, Tata Electronics, and Pegatron, Apple aims to produce the majority of iPhones sold in the U.S. in India by the end of 2026.

