Apple Initiates Early Discussions to Assemble iPhone Chips with Indian Manufacturers
Apple has gone an extra mile in extending its manufacturing presence in India by beginning to open preliminary talks with semiconductor companies in India on chip assembly and packaging, a move that aligns with the global supply chain strategy led by Sabih Khan Apple. The possibility of this action means that it is leaving the local assembly of iPhones to more lucrative semiconductor operations. Preliminary discussions with the CG Semi of Murugappa Group that is establishing a large OSAT plant in Gujarat highlight the interest of Apple in diversifying and enhancing its global supply chain. As the discussions are still in the initial stages, the development is an indicator of the increased role played by India in the global electronics ecosystem and its desire to become a semiconductor manufacturing hub.
Apple’s Growing Interest in Chip Assembly in India
There are also reports that Apple is in preliminary discussions with some of the Indian manufacturers to consider the assembly and packaging of some of the iPhone parts. This is the first occasion the tech giant is considering Apple chip assembly in India which is a step further up the electronic value chain. As the sources in the industry suggest, these talks are preliminary and do not necessarily mean that a commercial deal will be made.
The discussions focus on CG Semi that is owned by Murugappa Group and is building an outsourced semiconductor assembly and test (OSAT) factory in Sanand, Gujarat. In the event that the negotiations are successful, the facility might have the possibility of dealing with chips related to displays, though it is not finalized yet. In the case of Apple, this practice would allow it to increase its supply chain resiliency and decrease the reliance on the old manufacturing centers in East Asia.
CG Semi and the Challenge of Meeting Apple’s Standards
This project is the ₹7,600-crore OSAT under the support of central and state governments, developed by CG Semi in collaboration with world players in the field Renesas and Stars Microelectronics. The project also incorporates two high-technology facilities of G1 and G2 where G1 is already operational and can provide end to end services of chip assembly, packaging, testing and post testing services.
Nevertheless, analysts observe that a collaboration with Apple is not an easy task. The suppliers of Apple should be of an extremely high quality with regard to the consistency of yield and scale of operation. This is a challenge but a significant opportunity to the Indian semiconductor industry in India to have international credibility.
A Boost for India’s Semiconductor Ecosystem
A deal with Apple would be a historic milestone to the semiconductor ambitions of India, should it be finalised. It is after the latest events like the cooperation between Intel and Tata Electronics to consider the manufacturing and developing sophisticated packaging in India. Chip packaging belongs to a very important segment of the semiconductor value chain since it serves as the protection of components and enhances the performance and efficiency.
India analysts reckon that when India grows to become a major destination in the production of electronics worldwide, alliances with other corporations such as Apple would help in faster skills training, technological transfer and long term investments in the country’s OSAT facility in India.
