Apple eyes Indian chipmakers for iPhone component assembly, packaging: Report
Apple has reportedly begun preliminary talks with Indian chipmakers to assemble and package iPhone components. Economic Times on Wednesday, citing sources familiar with the discussions.
The report stated that Apple is considering assembling and packaging some chips in India for the first time. It is not yet clear which chips will be packaged at the Sanand facility in Gujarat, but they are likely to be display-related chips.
According to the report, Tim Cook-led Apple held talks with Murugappa Group’s CG Semi, which is building an outsourced semiconductor assembly and testing (OSAT) facility in Sanand.
Apple aims to shift production to India
Apple plans to shift production of all iPhones sold in the US to India by the end of 2026. Now it is accelerating these plans to offset possible high tariffs in China, its main production base. Reuters It was reported in April.
According to an earlier FT report, Apple aims to double iPhone production in India to 80 million units to meet demand for 60 million iPhones to be sold in the United States by 2026.
Why does Apple want to switch?
In April, the US administration imposed a 26% tariff on imports from India, well below the more than 100% duty imposed on Chinese goods at the time. Washington has since paused most missions except those to China for three months.
Immediately following President Trump’s tariff announcement, there was a sharp loss of approximately $700 billion in Apple’s market value. As a result, the US government exempted electronic items such as smartphones from tariffs, which was a relief for the smartphone giant.
Even before the tariffs were implemented, Apple was urging its suppliers in China, Japan, Taiwan and other countries to set up manufacturing facilities in India. Several key partners had begun production in the country, including Sunwoda for battery packs, Foxlink for cables and Aequs for device cases.
Why doesn’t Apple manufacture its products in the USA?
Low-cost skilled labor and the availability of well-established, precision-engineered product supply chains have been key factors that have attracted Apple to manufacturing centers in China and increasingly India for iPhone production.
By contrast, manufacturing and labor costs in America are significantly higher, making component sourcing much more expensive and less competitive for consumer electronics like the iPhone. Mint It was reported in May.
