Apple In Talks With Indian Chipmakers To Assemble, Package iPhone Components: Report

Apple has engaged in early-stage discussions with Indian semiconductor manufacturers to handle the assembly and packaging of iPhone chips, marking a significant leap in its global supply chain strategy, the Economic Times reported on Wednesday.

According to the report, these initial conversations involve CG Semi, a unit of the Murugappa Group currently setting up an outsourced semiconductor assembly and test facility in Sanand, Gujarat.

If finalised, this would represent Apple’s first venture into chip assembly and packaging within India, likely beginning with display-related chips, such as display driver integrated circuits.

“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,” according to a source cited in the ET report.

The move aligns with Apple’s broader strategic goal to diversify manufacturing away from China, as reported earlier by Reuters.

According to reports earlier this year, Apple is creating custom semiconductor chips that will power its devices in the future, such as smart glasses — a space where the company is pushing hard — artificial intelligence servers, and new range of MacBooks. 

According to Bloomberg tech expert Mark Gurman’s report, Apple’s “silicon design group is working on new chips that will serve as the brains for future devices.”

Gurman noted that Apple has made advancements on the chip it is creating for smart glasses, which also suggests that Apple is accelerating their development in a bid to rival Ray-Ban Meta AI eyewear.

As per the report, the chip for its planned smart glasses is based on those found in the Apple Watch. They reportedly use less energy than parts found in devices like the iPhone, iPad, and Mac. Taiwan’s TSMC is likely to produce this chip.