In a significant move to deepen its supply chain roots in India, technology giant Apple is reportedly in early discussions with domestic chip manufacturers. The talks aim to explore the assembly and packaging of key iPhone components within the country, marking a potential upgrade in its local manufacturing operations.
Apple's Preliminary Talks with Murugappa's CG Semi
According to a report by The Economic Times, Apple has initiated preliminary conversations with CG Semi, a company under the Murugappa Group. CG Semi is currently establishing an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. This dialogue represents a first for Apple in considering India as a location for chip assembly and packaging activities.
Sources cited in the report indicate that the discussions are at a very nascent stage. "The companies are in the very initial stages of discussion," one source revealed. While the specific chips to be packaged at the Sanand plant remain undecided, insiders suggest they will likely be display drivers or related display chips for Apple's products.
The report also highlighted that securing a place on Apple's supplier list is a challenging endeavor. "Apple is already in talks with several companies for a number of other supply chain functions, and very few will end up on their supplier list," a person familiar with the matter stated, calling it an "uphill climb" for CG Semi.
Broader Semiconductor Push: Tata Electronics and Intel Forge Alliance
This development follows closely on the heels of another major semiconductor partnership announced for the Indian market. Just a week prior, Tata Electronics and Intel signed a Memorandum of Understanding (MoU) to collaborate on semiconductor manufacturing in India.
The partnership between these two industrial giants has multiple facets:
- Exploring the manufacturing and packaging of Intel products for local markets at Tata's upcoming fabrication and OSAT facilities.
- Collaboration on advanced packaging technologies within India.
- Exploring opportunities to rapidly scale tailored AI PC solutions for both consumer and enterprise segments in India, which is projected to be a top-five global market by 2030.
"Intel and Tata intend to explore manufacturing and packaging of Intel products for local markets at Tata Electronics' upcoming Fab and OSAT facilities, as well as a collaboration for advanced packaging in India," confirmed an official statement from the Tata Group. This alliance aims to leverage Intel's AI compute designs with Tata's manufacturing prowess and vast market access.
Implications for India's Tech Manufacturing Ambitions
The potential entry of Apple into chip-level assembly and the Tata-Intel deal signify a strategic climb up the value chain for India's electronics manufacturing sector. Moving beyond mere device assembly to component and semiconductor work aligns with the government's Production Linked Incentive (PLI) schemes and vision for a self-reliant tech ecosystem.
If successful, Apple's engagement with CG Semi would not only diversify and secure its supply chain but also bring advanced packaging expertise to Gujarat's growing tech hub. Similarly, the Tata-Intel partnership positions India as a potential node for cutting-edge semiconductor work and AI-driven hardware development.
Together, these developments underscore a pivotal shift, positioning India not just as a massive consumer market but as an increasingly critical and sophisticated player in the global technology manufacturing network.
