Over the past few years, India has had a more pivotal role in Apple’s supply chain. The South Asian country now assembles a significant portion of iPhone units sold in both its domestic market and the United States. Meanwhile, the next potential step for India could be the assembly and packaging of iPhone chips.
According to a new report by The Economic Times, citing people familiar with the matter, Apple has begun negotiations with Indian chip manufacturers to shift part of iPhone chip assembly and packaging to India.
The website claims that “exploratory” talks are ongoing between Apple and Indian semiconductor firm CG Semi. The company is reportedly building a semiconductor assembly and testing (OSAT) facility in Sanand, Gujarat.
The report adds that the companies are still at the “very initial stages of discussion,” and that it remains unclear which chips would be packaged at the Sanand facility at this stage, though display chips are seen as the most likely candidates.
CG Semi is not as well-known in the semiconductor market as giants such as TSMC or AMD and has so far remained relatively obscure. The Economic Times described the situation as the “beginning of an uphill climb for CG Semi,” noting that if the deal materializes, the company will first need to meet Apple’s stringent quality standards. Apple is reportedly in talks with several other companies to diversify its supply chain.
iPhone display panels are currently supplied by Samsung Display, LG Display, and BOE, while display driver integrated circuit (DDIC) suppliers include Samsung, Novatek, Himax, and LX Semicon. These companies rely on chip fabrication and packaging facilities located in South Korea, Taiwan, and China.
Assembling and packaging iPhone chips is certainly more complex than assembling iPhone units. It remains to be seen if India"s semiconductor firms can win Apple’s confidence.