Apple Explores Chip Manufacturing in India for iPhones

Apple is reportedly in exploratory conversations with CG Semi to potentially handle iPhone chip assembly and packaging in India for the first time. According to The Economic Times, these discussions are in the preliminary stages, and it remains unclear which specific chips CG Semi would be responsible for.

The manufacturing facility in question is located in Sanand, India, and it is expected that the chips could likely be display chips. Currently, Apple sources its iPhone OLED panels from companies like Samsung Display, LG Display, and BOE, while display driver integrated circuits are sourced from Samsung, Novatek, Himax, and LX Semicon, primarily from South Korean, Taiwanese, or Chinese manufacturers.

This potential partnership with CG Semi aligns with Apple's broader strategy to diversify its manufacturing bases away from China, making India a key hub. The report also highlights that CG Semi has the backing of the Indian government as it develops its OSAT facility as part of the India Semiconductor Mission.

However, achieving a deal with Apple may pose challenges, given Apple's stringent quality requirements and the competitive nature of its supplier selection process. Meanwhile, Intel has recently announced a partnership with Tata Electronics to explore local manufacturing and packaging of its products, further emphasizing India's growing role in the semiconductor space.

The Economic Times notes that preliminary discussions are underway, but the outcome remains uncertain.