Apple Inc. (AAPL) is getting serious about India. The company is in preliminary talks with local chipmakers to assemble and package components for the iPhone, which would mark the first time Apple has considered doing this kind of work in the country. It's another sign that Apple's India strategy isn't just about final assembly anymore—it's about building deeper manufacturing roots.
The move comes as Apple works to strengthen its supply chain while navigating ongoing trade and tariff pressures that have made China-heavy manufacturing look riskier by the quarter.
CG Semi, owned by the Murugappa Group, is among the companies involved in these early discussions. The firm is currently building an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, and this marks the first time Apple is exploring chip assembly and packaging on Indian soil, according to a report from the Economic Times on Wednesday.
India's Semiconductor Ambitions Get a Boost
If these talks lead anywhere concrete, it would represent a major win for India's budding semiconductor sector. The country recently saw Intel Corp. (INTC) sign a partnership with Tata Electronics to explore local manufacturing and advanced packaging, signaling that global tech giants are taking India's chip ambitions seriously.
Right now, iPhone display panels come from Samsung Display, LG Display, and BOE Technology Group. Adding chip assembly and packaging to the mix would deepen Apple's local footprint considerably.
CG Semi is investing 7,600 crore Indian rupees into two state-of-the-art OSAT facilities, known as G1 and G2, with backing from both central and state governments. The company has also partnered with Renesas and Stars Microelectronics, and it's aiming to kick off commercial production in 2026 as part of the India Semiconductor Mission.
Wall Street Sees India as a Strategic Triumph
Apple stock has gained 10% year-to-date, though it continues to face pressure from tariffs and trade uncertainty tied to imports from China and India. Still, at least one prominent Wall Street analyst thinks India is shaping up to be one of Apple's smartest bets.
Wedbush analyst Dan Ives said a potential U.S.–India trade deal would significantly strengthen Apple's supply chain. He pointed to India's deep engineering talent, growing supply chain infrastructure, and large technology workforce as reasons the country has emerged as a serious challenger to China's dominance in tech manufacturing.
Ives called India one of the most closely watched trade negotiations for tech investors, and he thinks Apple stands to benefit the most if a deal comes together—especially given how fast the company has been shifting iPhone production and assembly to India.
According to Ives, Apple has already moved more than 50% of iPhone production to India, based on recent earnings call commentary. He called the pivot one of CEO Tim Cook's smartest decisions in recent months.
U.S. Manufacturing? Not Happening
Ives also dismissed the idea of iPhone manufacturing moving to the U.S., despite pressure from President Donald Trump. He said it's simply not economically viable. U.S.-made iPhones could cost around $3,500, he estimated, and relocating production would take five to ten years even if Apple wanted to do it.
Instead, Ives highlighted Cook's evolving role as both business leader and political navigator. Managing tariff negotiations and supply chain challenges in real time has increasingly required Cook to blend strategy with diplomacy, and Ives said his handling of these complexities could be a "Hall of Fame moment" for his legacy.
AAPL Price Action: Apple shares were up 0.10% at $274.89 during premarket trading on Wednesday.
