Apple is reported to be in preliminary talks with Indian semiconductor companies to assemble and package certain iPhone components, according to a report citing sources familiar with the discussions.
This marks the first instance of Apple exploring the assembly and packaging of some chips within Indiasignaling a possible shift in its manufacturing strategy.
The report noted that while it is not yet clear which specific chips would be handled at the proposed facility in Sanand, Gujarat, display- chips are considered the most likely candidates.
Apple has reportedly held discussions with CG Semi, a company owned by the Murugappa Group, which is currently setting up an outsourced semiconductor assembly and test (OSAT) facility in Sanand.
Reuters said it was unable to independently confirm the Economic Times report at the time of publication.
Neither Apple nor CG Semi provided immediate responses to Reuters’ requests for comment on the reported discussions.
CG Semi told the Economic Times that it does not comment on market speculation or conversations with individual customers, adding, “We will make appropriate disclosures as and when there is something concrete to share.”
Apple has been working toward a goal of manufacturing most of the iPhones sold in the United States at factories in India by the end of 2026.
The company is accelerating this shift in production to reduce exposure to potential tariff risks in China, which remains its primary manufacturing hub.
In April, the United States imposed import duties of 26% on goods from India, a rate significantly lower than the tariffs of over 100% that were applied to Chinese products at the same time.
The U.S. government has since suspended most of these duties for a three-month period, with the exception of tariffs on Chinese imports.
