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Apple Pushes India As Global Tech Hub, Plans Chip Assembly To Cut China Dependence

Apple is quietly preparing a major shift in its global manufacturing strategy by expanding beyond iPhones in India, aiming to assemble and package semiconductor chips, a move that could reshape global supply chains.

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Edited By: Vinay
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Apple India Manufacturing (Credit: OpenAI)

Apple is no longer looking at India only as an iPhone assembly base. Reports suggest the company is exploring chip assembly and packaging in India. This would mark a new phase in Apple’s manufacturing roadmap. The plan goes beyond final device assembly. It targets core electronic components. Such a move indicates deeper trust in Indian capabilities. Industry experts see this as a long-term bet. It signals strategic expansion, not experimentation.

Why Are Chips So Important?

Chips sit at the heart of every modern electronic device. Apple relies heavily on advanced semiconductors for performance and security. Until now, most chip-related work remained outside India. Bringing assembly and packaging here changes that equation. It allows closer control over supply chains. It also reduces logistical risks. This step can strengthen India’s semiconductor ecosystem. The impact would go far beyond Apple alone.

Which Reports Revealed This Plan?

According to reports from Reuters and Economic Times, Apple is in talks with Indian partners. These discussions focus on chip assembly and packaging. The reports describe this as a serious internal evaluation. No public announcement has been made yet. Apple has stayed silent officially. Still, multiple sources point in the same direction. That adds credibility to the development.

Where Could Chip Work Happen?

One likely location mentioned is Sanand in Gujarat. A factory there is being developed for OSAT operations. Apple is reportedly in discussions with CG Semi. CG Semi is part of the Murugappa Group. The facility would handle assembly and testing, not chip fabrication. This is often the first step for new semiconductor hubs. It suits India’s current strengths well.

Which Chips Might Be Assembled?

Reports suggest the chips could be linked to display systems. These are critical components in smartphones and devices. While exact details remain unclear, display-related chips are a logical start. They involve advanced packaging but not full fabrication. This makes them suitable for India’s current infrastructure. Over time, complexity could increase. Such gradual scaling reduces risk. It also allows skills to develop steadily.

Why Is Apple Reducing China Dependence?

Apple has been reshaping its manufacturing strategy for years. Heavy reliance on China has become risky. Trade tensions and tariffs have increased costs. The United States imposed steep duties on Chinese goods. India faced lower tariffs in comparison. This made India more attractive. Apple aims that by 2026, most US-sold iPhones will be made in India. Chips are the next logical step.

What Does This Mean for India?

If chip assembly begins, India’s global standing will rise. It would place India deeper into the electronics value chain. Jobs, skills, and investment would follow. The move would also boost confidence among other tech firms. India would shift from assembly to advanced manufacturing. For Apple, it means resilience and flexibility. For India, it means recognition as a serious tech hub. The ripple effects could be long-lasting.

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