Dec 17, 2025<\/p>\n
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Apple is in preliminary talks with some Indian chip manufacturers to assemble and package the component for the iPhone, said people with knowledge of the matter, a move that would mark a key step up in the value chain for vendors to the tech giant.<\/p>\n
Exploratory conversations have taken place between Murugappa Group-owned CG Semi, which is building an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, said the people cited.<\/p>\n
It\u2019s the first time Apple is evaluating the prospect of having certain chips assembled and packaged in India, they said.<\/p>\n
\u201cThe companies are in the very initial stages of discussion,\u201d one of them said. \u201cIt is not clear what chips will be packaged out of the Sanand facility at this stage, but it will likely be display chips.\u201d<\/p>\n
The person added that this may be the \u201cbeginning of an uphill climb\u201d for CG Semi since if talks progress, it will have to pass Apple’s stringent quality standards to clinch the deal. \u201cApple 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.<\/p>\n
Apple didn\u2019t respond to queries.<\/p>\n
CG Semi told ET it does not comment on market speculation or discussions with specific customers. \u201cWe will make appropriate disclosures as and when there is something concrete to share,\u201d the company said in a statement.<\/p>\n
Such a deal, if it\u2019s struck, would be a significant win for India’s burgeoning semiconductor industry, which recently saw US chip giant Intel sign a pact with Tata Electronics. According to the agreement of December 8, the companies will explore manufacturing and packaging of Intel products for local markets at Tata Electronics\u2019 upcoming fab and OSAT facilities. They said they would explore collaboration for advanced packaging in India. Packaging is critical in the chip business because it protects internal elements and improves efficiency, among other factors.<\/p>\n
Analysts said Apple\u2019s iPhone display panels come from the world\u2019s top three OLED panel makers \u2014 Samsung Display Corp, LG Display and BOE. The display driver integrated circuit (DDIC) suppliers for these panel makers include Samsung, Novatek, Himax and LX Semicon, which primarily depend on South Korean, Taiwanese or China-based units for getting chips manufactured and packaged.<\/p>\n
\u201cAs India matures into a vital node in the global electronics supply chain, Apple could benefit from enhanced resilience and diversification by potentially partnering with an Indian chip major,\u201d said Prabhu Ram, vice president, industry research group, CyberMedia Research. \u201cThe main challenge\u2014and opportunity\u2014for CG Semi will be meeting Apple\u2019s stringent quality standards, attaining consistent yields and steering deep OSAT process expertise at scale.\u201d<\/p>\n
CG Semi’s Rs 7,600-crore OSAT plant has central and state government support and is being set up in collaboration with Renesas and Stars Microelectronics.<\/p>\n
The amount is being invested over five years to develop two state-of-the-art facilities \u2014 G1 and G2. G1 was inaugurated on August 28 and will operate at a peak capacity of about 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing and post-test services.<\/p>\n
The company said at the time that it was on track to commence commercial production in calendar year 2026, as committed to the India Semiconductor Mission.<\/p>\n