Apple may be preparing to take its manufacturing ambitions in India a step further. The tech giant is reportedly in early-stage discussions with Indian semiconductor companies to assemble and package certain iPhone chips locally, a move that could significantly strengthen India’s position in Apple’s global supply chain.

According to a report by a famous publication, Apple has initiated preliminary talks with select domestic semiconductor firms to explore the feasibility of chip assembly and packaging in India. If these discussions translate into concrete action, it would mark the first time Apple considers handling part of its chip-related processes within the country. Until now, India’s role in Apple’s ecosystem has largely focused on device assembly, which already supports around 3,50,000 direct and indirect jobs.

Among the companies reportedly involved in these conversations is CG Semi, part of the Murugappa Group. CG Semi is currently setting up an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. While details about the specific iPhone chips that could be processed at this plant are yet to be confirmed, industry sources suggest these may include display-related components.

However, entering Apple’s supply chain is no easy task. The company is known for its rigorous quality benchmarks and highly selective supplier approval process. As the report notes, a source familiar with the matter said, “Apple is already engaging with multiple firms across different parts of its supply chain, but only a handful eventually make it onto the approved supplier list.” This underscores the challenges Indian firms may face before securing Apple’s trust at scale.

Officially, Apple has declined to comment on the report. CG Semi has also maintained a cautious stance, stating that it does not comment on market speculation, while adding that it would “make appropriate disclosures as and when there is something concrete to share.”

The motivation behind Apple’s interest in local chip assembly appears to be both strategic and geopolitical. Currently, Apple sources iPhone display panels from global OLED suppliers such as Samsung Display, LG Display, and BOE. The associated display driver integrated circuit (DDIC) suppliers—including Samsung, Novatek, Himax, and LX Semicon—largely depend on manufacturing and packaging facilities located in South Korea, Taiwan, and China.

By shifting some of this work to India, Apple could reduce its dependence on China and diversify supply chain risks. This aligns with the company’s broader plan to manufacture most iPhones sold in the US at Indian facilities by the end of 2026, helping it mitigate potential tariff pressures on Chinese imports under the Trump administration.

India’s importance to Apple has already grown substantially. In 2025, India became the first country outside China where Apple began manufacturing its latest models—the iPhone 17 series and the iPhone Air—from day one. Expanding chip assembly locally would further deepen this manufacturing footprint.

Beyond Apple, India’s semiconductor ambitions are gaining traction through global collaborations. Recently, Intel signed an agreement with Tata Electronics to explore domestic manufacturing and packaging of Intel products at Tata’s upcoming $14 billion semiconductor facilities. Together, these developments point to a rapidly evolving semiconductor ecosystem in India, with Apple’s potential involvement acting as a major catalyst.