Apple is holding “exploratory conversations” with Indian suppliers about iPhone chip assembly and packaging in the country for the first time, reports The Economic Times.
Apple has reportedly sat down with semiconductor company CG Semi, which is constructing one of India’s first outsourced semiconductor assembly and test (OSAT) facilities in Sanand, Gujarat.
The report says its inside sources tell it:
“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 noted by the report, Apple currently sources its iPhone display panels from three leading OLED manufacturers: Samsung Display, LG Display, and BOE. The display driver ICs for these panels are supplied by several companies, including Samsung, Novatek, Himax, and LX Semicon, all of which rely greatly on chip fabrication and packaging facilities located in South Korea, Taiwan, and China.
The news comes as Apple continues to move a goodly amount of its production capacity to India, with the intent of making it a major supply chains and assembly hub.
Apple is said to have assembled $22 billion worth of iPhones in India during the 12 months ending in March 2025, which was a nearly 60% increase from the previous year. Apple is said to be planning to manufacture the lion’s share of the iPhones sold in the United States by the end of next year.
