Apple's latest step forward.

Some of Apple's chip lines will be assembled in India. Photo: Reuters .

According to the Economic Times , the iPhone manufacturer is currently in the initial stages of negotiations with chip manufacturers in India. If this plan goes through, it would be the first time Apple has considered assembling and packaging some of its iPhone chips in the South Asian country, instead of relying entirely on traditional manufacturing hubs.

The Economic Times report indicates that it remains unclear what type of chips will be assembled and packaged in India. However, sources suggest it is likely to be microprocessors related to display connectivity. This operation is expected to take place at the Sanand plant, which is being developed into a new hub for the semiconductor industry.

Initially, Apple held discussions with CG Semi, a company owned by Murugappa Group. This company is building an OSAT (Outsourced Semiconductor Assembly and Test) semiconductor assembly and testing facility in Sanand. This is a common model in the semiconductor industry, specializing in assembling, packaging, and testing chips after production.

Currently, Reuters reports that it has not been able to independently verify the information. Apple and CG Semi have also not issued official responses to requests for comment. Meanwhile, the Indian company told the Economic Times that it does not comment on market speculation or discussions with specific customers.

"We will share appropriate information when something specific is permitted to be released," a representative from CG Semi stated.

The negotiations in India come as Apple accelerates its plan to diversify its supply chain, aiming to reduce its reliance on China. According to Reuters , in April, Apple set a goal of manufacturing the majority of iPhones sold in the US at factories in India by the end of 2026.

The US administration imposed a 26% import tariff on goods from India, significantly lower than the more than 100% tariff previously applied to Chinese goods at the same time. Washington then temporarily suspended most tariffs for three months, except for the tariff on Chinese goods.

In this context, Apple's consideration of assembling and packaging chips in India is part of a long-term strategy to build a more flexible supply chain while leveraging the country's increasingly robust manufacturing capabilities.