Apple Investigates Chip Assembly and Packaging Prospects in India 

In an important step to increase its manufacturing presence in India, Apple is reportedly  looking into the possibility of assembling and packaging iPhone processors there for the  first time. The tech giant is reportedly in the early stages of talks with CG Semi, an  Indian semiconductor company, to perhaps handle the assembly and packaging of  chips for upcoming iPhone components, according to a report published in The  Economic Times. 

Even if these talks are still in their early stages, they demonstrate Apple’s continuous  efforts to reduce its dependency on China and diversify its worldwide supply chain.  India, which has already established itself as a significant hub for iPhone production, is  becoming an increasingly important component of this approach. 

Initial Conversations with CG Semi 

One of the first large outsourced semiconductor assembly and testing (OSAT) facilities  in India is being developed by CG Semi in Sanand, Gujarat. According to the individuals  quoted in the report, discussions are still in the exploratory stage and there are currently  no specifics regarding which chips might be produced and packaged at this facility. 

According to industry sources, display-related chips may be among the most likely  contenders. Currently, firms like Samsung, Novatek, Himax, and LX Semicon provide  display driver integrated circuits (DDICs), while suppliers like Samsung Display, LG  Display, and BOE provide OLED panels for Apple. The majority of these parts are  produced and packed in China, Taiwan, or South Korea.

The country’s role in Apple’s semiconductor supply chain would be significantly  improved if the company moved even a small portion of this process to India. 

Bolstering India’s Position in Apple’s Supply Chain 

India has steadily become more significant to Apple in recent years, particularly as the  corporation steps up its efforts to diversify away from China. The local electronics  manufacturing ecosystem would be further strengthened by the swift growth of iPhone  assembly activities in India and the possible addition of chip packaging. 

Industry analysts caution that joining Apple’s supplier network is a challenging  undertaking. Not all possible partners meet Apple’s high standards for quality,  scalability, and dependability. 

Only a small number of businesses are finally qualified as long-term suppliers,  according to a source quoted by The Economic Times, even though Apple is evaluating  numerous firms for various supply-chain responsibilities. 

Government Support and the Semiconductor Initiative 

Both the national government and the state administrations of the India Semiconductor  Mission have shown strong support for CG Semi’s proposed ₹7,600 crore OSAT facility.  This project aims to establish India as a worldwide centre for semiconductor  production, assembly, and display technology. 

The government’s support greatly improves CG Semi’s prospects, especially as India  works to build domestic capabilities along the semiconductor value chain, from  advanced packaging to fabrication. 

Growing Momentum in India’s Chip Ecosystem 

Apple’s talks coincide with a rise in semiconductor-related activities in India. Intel and  Tata Electronics recently announced a collaboration to investigate producing and  packaging Intel products at Tata’s future OSAT and fabrication facilities. Collaboration  on cutting-edge packaging technologies, which are becoming more and more important  for chip performance and efficiency, is another aspect of this arrangement. 

A Strategic Opportunity for India 

Even though Apple and CG Semi are still in the early stages of their talks, a successful  collaboration would be a major step forward for India’s aspirations in the  semiconductor industry. It would support the government’s initiatives to build a strong,  independent electronics ecosystem and demonstrate the rising international trust in  India’s manufacturing capabilities.