Apple has begun early discussions with a few Indian chipmakers about assembling and packaging chips used in the iPhone, Economic Times reported citing people familiar with the matter. If the talks are successful, the move would allow Indian vendors to step up in the value chain for the tech giant.
This is the first time Apple is seriously considering having some of its chips put together and packaged in India, marking a possible shift in where the company handles this part of its supply chain.
Initial stages of discussion
Among those involved is CG Semi, part of the Murugappa Group, which is setting up a semiconductor assembly and testing plant in Sanand, Gujarat, the report said citing the people.
One of them told ET that the discussions are still at a very early stage. It is not yet clear which chips could be handled at CG Semi’s Sanand plant, though display-related chips are seen as the most likely option for now.
The people said this could be the start of a tough journey for CG Semi. Even if the talks move ahead, the company would need to meet Apple’s very strict quality requirements to secure any deal. They also pointed out that Apple is speaking to many firms for different parts of its supply chain, but only a small number usually make it onto the final supplier list.
CG Semi told ET that it does not comment on market rumours or talks with individual customers, adding that it will share details only when there is firm information to disclose.
Apple chip talks could boost India’s growing semiconductor push
If the deal goes through, it would be a major boost for India’s fast-growing semiconductor sector. The industry recently got a lift after US chipmaker Intel signed an agreement with Tata Electronics.
Under that December 8 pact, the two companies plan to study the possibility of making and packaging Intel chips in India for local use at Tata’s upcoming chip-making and assembly units.
They are also looking at working together on advanced chip packaging in the country. Packaging plays a key role in chip production as it protects sensitive parts and helps improve performance.