Apple Expands India Role With Plans for Local Chip Packaging

Apple logo on a glass storefront.

Apple is considering a major new step in its India expansion. According to recent reports, the company has entered early talks to package Apple Silicon chips in the country. If finalized, this would mark Apple’s first move to handle chip packaging inside India.

So far, India has focused mainly on assembling iPhones. However, this shift could push the country further into Apple’s core supply chain. As a result, India may soon handle more advanced manufacturing tasks that were once limited to other regions.

Apple logo on a glass storefront.

Early Talks With Indian Chip Firms

Apple is reportedly holding preliminary discussions with several Indian semiconductor firms. One key name is CG Semi, a Murugappa Group company building a chip assembly and test facility in Gujarat.

However, the talks remain in the early stages. Sources say CG Semi would face strict requirements to meet Apple’s quality and reliability standards. Even so, the discussions signal Apple’s serious interest in expanding local capabilities rather than relying only on imports.

What Chips Could Be Packaged

At this stage, Apple has not confirmed which chips would be packaged in India. Analysts believe advanced A-series processors will likely stay with long-time partner TSMC.

Instead, industry sources suggest Apple may start with display-related chips or similar components. This approach would reduce logistical complexity while allowing India to gain experience with Apple-grade processes.

Why India Matters More Than Ever

Apple’s supply chain already employs about 350,000 workers in India. By adding chip packaging, Apple shortens shipping distances and lowers transportation costs. Moreover, the move supports Apple’s long-term goal of reducing dependence on China.

Meanwhile, India’s government continues to invest heavily in semiconductor infrastructure. A $433 million joint venture between Foxconn and HCL aims to launch a new wafer plant by 2027, strengthening the ecosystem Apple relies on.

A Strategic Shift in Apple’s Supply Chain

Although no final decision has been made, Apple’s interest in chip packaging highlights a clear trend. The company is steadily building a more diverse, resilient supply chain. If successful, India could soon play a much larger role in how iPhones are made worldwide.

SOURCES:Economic Times
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