This marks the first occasion Apple has considered assembling and packaging certain chips in India, according to the ET report, which notes that it remains uncertain which chips will be packaged at the Sanand facility, although display chips are the likely candidates.
Apple has engaged in discussions with CG Semi, owned by the Murugappa Group, which is constructing an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, the report indicates.
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Reuters was unable to immediately verify the ET report. Apple and CG Semi have not yet responded to Reuters’ request for comments.
CG Semi informed ET that it does not provide commentary on market speculation or discussions with particular clients. “We will make appropriate disclosures as and when there is something concrete to share,” the company stated to the newspaper.
Apple aims to produce the majority of its iPhones sold in the United States at Indian factories by the end of 2026, expediting these plans to navigate potential increases in tariffs from China, its primary manufacturing hub, as reported by Reuters in April.
In April, the US administration imposed 26% duties on imports from India, significantly lower than the over 100% tariffs on Chinese goods at that time. Since then, Washington has paused most duties for three months, except those applicable to China.