Apple in Early Talks for iPhone Chip Assembly in India

Apple has entered early-stage discussions with an Indian semiconductor firm to explore assembling and packaging components for its iPhone lineup in the country for the first time, according to industry sources familiar with the matter. The talks center on CG Semi, a unit of the Murugappa Group, which is constructing an outsourced semiconductor assembly and test facility in Sanand, Gujarat. This potential move represents a significant expansion of Apple's manufacturing footprint in India, building on its existing iPhone assembly operations there.

The conversations, described as exploratory, focus on handling chips such as display driver integrated circuits, which control iPhone screens. "The companies are in the very initial stages of discussion," one source with knowledge of the talks said. "It is not clear what chips will be packaged out of the Sanand facility at this stage, but it will likely be display chips." Currently, Apple sources iPhone display panels from manufacturers including Samsung Display, LG Display, and BOE, with the associated driver circuits supplied by companies like Samsung, Novatek, Himax, and LX Semicon. These components undergo packaging and backend...