India to become Apple’s new tech powerhouse as company plans local chip assembly, challenging China

Apple is said to be setting up plans to assemble and package iPhone chips in India(BHARAT) in order to increase its footprint in the country. India(BHARAT) may well soon emerge as a leading global technology and semiconductor manufacturing hub.

Apple has been involved in assembling iPhones in India(BHARAT) through contract manufacturers such as Foxconn, Wistron, and Tata Electronics for the last several years. These manufacturers ship millions of the company’s iPhones to various markets annually. However, a new report has revealed that Apple has been in preliminary talks with India(BHARAT)n chipmakers to assemble iPhone chips and packaging in the country. This would be the first time that Apple has assembled chips in India(BHARAT).

iPhone chip assembly plans reportedly include talks with India(BHARAT)’s CG Semi, part of the Murugappa Group. CG Semi is setting up an OSAT (Outsourced Semiconductor Assembly and Test) facility in the western state of Gujarat. This facility is one of several that Apple has reportedly been considering for local chip assembly should its discussions with CG Semi bear fruit. The Cupertino giant could begin assembling major components for the iPhone at the Gujarat facility. This is reportedly particularly true of display-related iPhone chips.

Analysts believe that the company’s talks with India(BHARAT)n chipmakers marks a significant shift from the assembly of devices into further stages of the semiconductor supply chain. Such processes have hitherto been largely the preserve of a traditional set of geographies, such as those in East Asia, including China, Taiwan, and South Korea.

India(BHARAT): A geopolitical and economic shift

Apple’s move comes at a time when geopolitics and economic uncertainty are creating major tectonic shifts in the global supply chain. China has been the center of gravity for smartphone and chipset manufacturing for some time now. However, increased geopolitical friction between Washington and Beijing, tariffs, and Covid-19 disruptions have seen several multinationals look to source from other countries.

India(BHARAT), with a large domestic market, government incentives, and a nascent ecosystem in electronics manufacturing, is a top alternative. The lower U.S. tariffs on India(BHARAT)n-made technology goods compared to China is also a factor. The U.S. tariffs on electronics manufactured in India(BHARAT) are reportedly around half of the 25% levied on goods made in China. All this makes India(BHARAT) more attractive as a production hub for goods destined for the U.S. market. Apple is said to be targeting a situation in which most of the units it ships to the U.S. in 2026 are produced in India(BHARAT).

India(BHARAT)’s semiconductor strategy

Apple’s potential foray into chip assembly in India(BHARAT) is likely to also provide a significant boost to India(BHARAT)’s semiconductor strategy. The country has been seeking to transform itself into a major player in chip manufacturing. This is through a combination of its Semiconductor Mission strategy and a new generation of domestic investment. India(BHARAT) has been making inroads into chip design and developing the supply chain that comes with that. The recent tie-up between Tata Electronics and global tech players is one example of a wider trend to beef up domestic chip capabilities.

Apple’s move would be a major fillip to this strategy. This would be through technology transfer and jobs that come with the semiconductor industry. It would also bolster the supporting supply chain and provide smaller India(BHARAT)n suppliers with an opportunity to access the world’s most valuable brand. In the long term, India(BHARAT) could become a device assembly and sophisticated semiconductor hub.

How far away is assembly?

Apple’s high quality standards and exacting requirements for suppliers could be an obstacle to a quick inroad. India(BHARAT)n companies will also have to meet onerous performance metrics and scale up to handle sophisticated assembly work.

However, this is a moment of seismic change in Apple’s global strategy and India(BHARAT)’s tech strategy. The ramifications are likely to ripple through to the semiconductor supply chain regionally and globally over time.