Apple is in talks with Indian chipmakers to assemble and package components for the iPhone, according to a report by The Economic Times. The company has been talking to CG Semi — a semiconductor company in India, which has been building one of the country’s first major outsourced semiconductor assembly and test (OSAT) facilities — to assemble and package unspecified future iPhone chips.
“The companies are in the very initial stages of discussion,” the report said, citing people familiar with the matter. “It is not clear what chips will be packaged out of the Sanand facility at this stage, but it will likely be display chips.”
The Economic Times says that Apple’s iPhone OLED panels are sourced from Samsung Display, LG Display, and BOE. At the same time, its display driver integrated circuit (DDIC) comes from Samsung, Novatek, Himax, and LX Semicon, “which primarily depend on South Korean, Taiwanese or China-based units for getting chips manufactured and packaged.” If the deal goes through, it will increase Apple’s reliance on India, which has served as the company’s primary assembly hub in its diversification away from China.
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This comes during a busy time for chipmakers in India, with Intel striking a deal with Tata Electronics. According to the Economic Times, the companies will explore manufacturing and packaging of Intel products for local markets at Tata Electronics’ 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.
However, these talks are just in their preliminary stage. One source told The Economic Times that this could be “the beginning of an uphill climb” for CG Semi, given Apple’s quality requirements:
“Apple 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 source said.
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Meanwhile, India is emerging as a major investment destination for major tech companies. Microsoft and Amazon recently pledged more than $50 billion towards the country’s cloud and AI infrastructure.
Amazon announced a commitment of over $35 billion in India’s cloud and artificial intelligence space by 2030 last week. his commitment was unveiled at the Amazon Smbhav Summit in New Delhi, and it builds on nearly $40 billion already invested in the country. Meanwhile Microsoft announced $17.5 billion in investment in the country, spread over four years, aimed at expanding hyperscale infrastructure, embedding AI into national platforms, and advancing workforce readiness.