In a significant development for India's technology manufacturing sector, global tech giant Apple is reportedly engaged in advanced discussions with a domestic chipmaker. The talks focus on the assembly and packaging of critical components for Apple's flagship iPhones within the country.
Apple's Strategic Move into Indian Semiconductor Ecosystem
According to a Reuters report dated 17 December 2025, Apple has held negotiations with CG Semi, a company owned by the Chennai-based Murugappa Group. The discussions center on leveraging CG Semi's upcoming semiconductor facility for Apple's supply chain needs. This move aligns with Apple's broader strategy to diversify its production base and deepen its roots in India, one of its fastest-growing markets.
Details of the Proposed Partnership
The core of the potential partnership involves CG Semi's new outsourced semiconductor assembly and test (OSAT) facility. This plant is currently under construction in Sanand, Gujarat. OSAT facilities are crucial in the chip-making process, as they handle the final stages where fabricated silicon wafers are assembled into individual chips, tested, and packaged for use in electronic devices.
If the deal materializes, this facility would be tasked with the precision assembly and packaging of specific semiconductor components destined for Apple's iPhones. This represents a major step beyond mere smartphone assembly, moving into the more complex and value-added domain of component-level manufacturing.
Implications for India's Manufacturing Ambitions
This development carries substantial weight for India's "Make in India" and semiconductor self-reliance goals. A successful collaboration between Apple and a homegrown chipmaker would serve as a powerful endorsement of India's technical capabilities and manufacturing ecosystem. It signals a move up the value chain from being just an assembly hub for finished goods to participating in the sophisticated global semiconductor supply chain.
For Apple, partnering with an Indian OSAT provider could enhance supply chain resilience and potentially reduce costs, while also helping the company meet potential local sourcing requirements. For CG Semi and the Murugappa Group, securing a client of Apple's stature would be a landmark achievement, validating their investment and technological roadmap in the competitive semiconductor sector.
The reported talks underscore the growing synergy between global technology leaders and India's evolving industrial landscape. As of the report's publication, neither Apple nor CG Semi has officially commented on the discussions. The industry will be watching Sanand closely for further developments that could reshape electronics manufacturing in India.
