New Delhi: Apple has initiated preliminary discussions with select Indian semiconductor companies to explore assembling and packaging iPhone components, marking a potential first step toward expanding India’s role in its global supply chain. If these talks progress, certain iPhone chips could be handled locally, reflecting India’s growing significance in electronics manufacturing.
One of the companies involved is CG Semi, part of the Murugappa Group, which is setting up an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. While the discussions are still exploratory, display-related chips are seen as likely candidates for local assembly. Any advancement will depend on CG Semi meeting Apple’s rigorous quality and performance standards.
Apple is known to engage with multiple suppliers across its supply chain, but only a few make it onto its approved list. Both Apple and CG Semi have declined to comment publicly, emphasizing that details will be shared once agreements are finalized.
If realized, the collaboration would provide a substantial boost to India’s developing semiconductor ecosystem. The move comes shortly after Intel signed an agreement with Tata Electronics to manufacture and package chips domestically, including exploring advanced chip packaging techniques that enhance performance and durability.
Currently, Apple sources iPhone display panels from Samsung Display, LG Display, and BOE, while the associated display driver integrated circuits (DDICs) rely heavily on South Korea, Taiwan, and China for manufacturing and packaging. Partnering with an Indian chip manufacturer could provide Apple with greater supply chain resilience and diversification.
CG Semi’s OSAT project, backed by both central and state government support, is a Rs 7,600-crore investment in partnership with Renesas and Stars Microelectronics. The facility, spread over five years, includes two advanced units — G1 and G2. G1, inaugurated in August, will handle end-to-end chip assembly, testing, and packaging with a peak capacity of around 0.5 million units per day. Commercial production is slated to begin in 2026, aligning with India’s Semiconductor Mission goals.
Industry experts note that meeting Apple’s strict quality standards, achieving stable yields, and scaling up OSAT capabilities will be key challenges and opportunities for CG Semi as it positions itself in the global semiconductor supply chain.
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