Apple May Move Chip Assembly to India: Reports

Apple’s India story may be entering a more consequential phase—one that moves beyond assembling devices to shaping what goes inside them.

As first reported by The Economic Times, Apple is in early discussions with Indian chip manufacturer CG Semi to assemble and package select iPhone components in the country. While the conversations are still preliminary, the development points to a potential step-up in India’s role within Apple’s global supply chain.

According to the ET report, CG Semi, part of the Murugappa Group, is setting up an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. Sources cited in the report said this is the first time Apple is considering assembling and packaging certain chips in India, with display-related chips likely to be among the early candidates.

Moving Beyond Assembly Lines

Apple’s manufacturing footprint in India has grown steadily over the years, largely centred on iPhone assembly. Chip packaging, however, sits higher up the value chain and requires tighter quality controls, specialized processes, and deeper integration with global suppliers.

People familiar with the discussions told ET that the talks are at a very early stage and that it remains unclear which specific chips may eventually be packaged at the Gujarat facility. One source described the engagement as the “beginning of an uphill climb” for CG Semi, noting that Apple evaluates multiple vendors across supply-chain functions, with only a few making it onto its final supplier list.

If the discussions progress, it could mark a shift in how Apple views India, not just as a large market and assembly base, but as a location capable of handling more complex semiconductor processes.

India’s Semiconductor Push Gains Context

The timing of these talks is notable. The report comes shortly after Tata Electronics and Intel announced a partnership to manufacture and assemble semiconductors in India for the domestic market.

Under a memorandum of understanding, Intel and Tata intend to explore manufacturing and packaging Intel products at Tata Electronics’ upcoming fab and OSAT facilities. The collaboration also includes advanced packaging and a plan to scale AI PC solutions for consumer and enterprise markets in India.

“Intel and Tata intend to explore manufacturing and packaging of Intel products for local markets at Tata Electronics' upcoming Fab and OSAT (Outsourced Semiconductor Assembly and Test) facilities, as well as a collaboration for advanced packaging in India,” the Tata Group statement said.

Together, these developments suggest that India’s semiconductor ambitions are beginning to align with the needs of global technology majors.

While chip fabrication often grabs headlines, assembly and packaging are critical steps that determine performance, efficiency, and reliability. For device makers like Apple, control over these stages can improve supply-chain resilience and reduce exposure to geopolitical or logistical disruptions. For India, attracting such work could accelerate ecosystem development around materials, testing, logistics, and skilled talent areas essential for building a sustainable semiconductor industry.

For now, Apple’s engagement with CG Semi remains exploratory. There are no timelines, confirmed investments, or finalised scope. But even early-stage talks carry weight, given Apple’s influence on supplier ecosystems. If Apple does move ahead with chip packaging in India, it would reinforce a broader trend: global technology companies are testing whether India can support not just scale but sophistication. The next signals to watch will be whether these discussions translate into pilot projects and whether more global chip and device players follow a similar path.