Apple chip assembly and packaging may begin soon, as the brand is in early discussions with Indian chipmakers for the same. This marks a potential expansion of its production in India. The talks are at a preliminary stage, and no final deal has been confirmed. Read the article for full details.
Apple’s India Talks With Chipmakers
According to a report by The Economic Times, Apple has held early talks with companies such as CG Semi, a unit of the Murugappa Group (a semiconductor group in India).
This would be a first for Apple to assemble and package chips in India. Analysts believe Apple may initially focus on chips such as display drivers or other components used in iPhones. Both Apple and CG Semi refused to comment directly on the discussions so far. It is also revealed that Apple is in discussions with several companies for other supply chain needs.
Why Apple’s Shift in Supply Chain?
Here are some reasons for this:
- Apple has already been shifting parts of its iPhone production to India over recent years. The country now assembles several iPhone models and exports many to global markets.
- Export duties and tariffs on goods produced in China have pushed many companies to diversify supply chains. India offers lower duties on goods exported to the United States, which has made it more attractive.
What does this mean for India and Apple?
For India
- India could move up the value chain by not just assembling phones but also packaging critical chip parts.
- This aligns with India’s semiconductor mission, strengthening its position in the global chip manufacturing ecosystem.
- Local vendors, such as CG Semi, could see significant growth.
For Apple
- This step could reduce dependence on China for crucial parts of its supply chain.
- It fits with Apple’s broader plan to diversify and strengthen production outside China.
- Moving chip assembly and packaging to India, even if slowly, could lower costs long term.
That said, there’s no official confirmation yet, so it’s best to wait for further updates. Stay tuned to this space for such updates.
