Apple Eyes Indian Silicon: A Strategic Shift in iPhone Component Assembly

Apple is reportedly evaluating a significant change to its global production strategy by working with semiconductor manufacturers in India to oversee the assembly and packaging of select iPhone components. Sources familiar with the discussions indicate that Apple has initiated early talks with local companies, representing the first time the firm has seriously considered relocating chip-related processing activities to India. While specific technical details have not been made public, industry analysts suggest that a manufacturing plant currently under construction in Sanand, Gujarat—run by CG Semi, a Murugappa Group subsidiary—could concentrate on integrated circuits associated with display technology.

This potential collaboration aligns with Apple’s larger objective of relocating a substantial portion of iPhone production for the U.S. market to India by the end of 2026. The company is reportedly accelerating this plan to reduce its exposure to trade uncertainty and high tariff barriers associated with manufacturing in China. Recent tariff structures illustrate the financial incentive: U.S. duties on imports from India were approximately 26% earlier this year, compared with tariffs exceeding 100% on comparable goods sourced from China.

Although neither Apple nor CG Semi has publicly confirmed these developments, the implications for the region are already significant. The establishment of an outsourced semiconductor assembly and testing facility in Gujarat reflects India’s growing importance in the global electronics supply chain. Through this expanded manufacturing presence, Apple seeks to lessen geopolitical risk while benefiting from increasingly favorable trade relations between the United States and India, reinforcing supply chain resilience for its core products.