Chips Smartphone Giant

Apple in talks with Indian chipmaker on iPhone parts: sources

• ByStartupStory     |    December 17, 2025

Apple is holding early discussions with Indian semiconductor companies about assembling and packaging iPhone components, a move that could mark the tech giant’s first foray into local chip production beyond final device assembly.

The preliminary talks involve CG Semi, part of the Murugappa Group, which is building a ₹7,600 crore outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, with support from Renesas and Stars Microelectronics. While specifics remain unclear, display-related chips are considered the most likely candidates, given their alignment with Apple’s supply needs and the facility’s capabilities.

These conversations are at a nascent stage, with success hinging on CG Semi meeting Apple’s rigorous quality standards, stable yields, and scaling requirements. Apple engages multiple suppliers across its chain, but only a select few make the approved list.

The development follows Intel’s recent pact with Tata Electronics for similar manufacturing and packaging in India, underscoring the country’s rising semiconductor ambitions. For Apple, it supports diversification from China amid US tariff risks, with plans to produce most US-bound iPhones locally by late 2026. India already assembles iPhones via Foxconn, Pegatron, and Tata, creating over 350,000 jobs.

If realised, the arrangement would elevate Indian vendors in Apple’s value chain, boost the domestic chip ecosystem, and enhance supply resilience for global markets.

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