New Delhi: Apple’s India story may be entering a quieter but deeper phase. After years of focusing on iPhone assembly, the company has now begun early talks around chip assembly and packaging in the country. The development, first reported by Economic Times, hints at a shift that goes beyond final device assembly and moves closer to the heart of Apple’s hardware supply chain.
People familiar with the matter told Economic Times that Apple is in early discussions with a few Indian chipmakers. The talks are still tentative, but they signal something new. This is the first time Apple is seriously considering having some of its chips assembled and packaged in India, a step that could allow local vendors to move up the value chain.
Apple explores chip packaging in India
According to the Economic Times report, one of the companies involved in the discussions is CG Semi, part of the Murugappa Group. CG Semi is setting up a semiconductor assembly and testing plant in Sanand, Gujarat. People cited in the report said the conversations are at a very early stage and no final decisions have been made yet.
One person told Economic Times that it is not clear which chips Apple may consider for India-based packaging. For now, display-related chips are seen as the most likely option. These are not the most complex processors inside an iPhone, but they still play a key role in how the device functions.
For Apple, even small steps like this matter. Chip packaging sits between manufacturing and final product assembly. It is a space Apple has traditionally handled with extreme caution and tight controls.
A tough road for Indian vendors
People familiar with the talks also flagged the challenges ahead. One of them told Economic Times that this could be the start of a tough journey for CG Semi. Even if discussions move forward, the company will need to meet Apple’s very strict quality requirements.
Apple is known to speak with many companies across its supply chain. Only a handful usually make it to the final supplier list. That reality looms large over any Indian firm hoping to work with the company.
CG Semi has kept its response limited. The company told Economic Times that it does not comment on market rumours or talks with individual customers. It added that it would share details only when there is firm information to disclose.
Why chip packaging matters
Chip packaging may not sound glamorous, but it plays a crucial role in modern electronics. Packaging protects sensitive parts of a chip and helps improve performance and reliability. For smartphones like the iPhone, even small improvements can affect battery life, heat control, and display quality.
For India, moving into chip packaging is a logical next step. The country already assembles millions of smartphones every year. Adding more semiconductor work brings higher skills, tighter standards, and better long-term value.
Part of a larger semiconductor push
If Apple goes ahead with this plan, it would add momentum to India’s growing semiconductor ambitions. The sector recently got a boost after US chipmaker Intel signed an agreement with Tata Electronics.
Under the December 8 pact, Intel and Tata plan to study the possibility of making and packaging Intel chips in India for local use at Tata’s upcoming chip-making and assembly units. The two companies are also exploring advanced chip packaging work in the country.