Apple Inc. (NASDAQ:AAPL) is deepening its India strategy as it looks to strengthen its supply chain amid ongoing trade and tariff pressures.
It is holding preliminary talks with Indian chipmakers to assemble and package components for the iPhone, a move that could elevate local vendors in the tech giant’s supply chain.
CG Semi, owned by the Murugappa Group and currently building an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, has participated in these early discussions.
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This marks the first time Apple is considering assembling and packaging certain chips in India, the Economic Times reported on Wednesday.
India’s Semiconductor Push
If finalized, the deal would be a major milestone for India’s growing semiconductor sector, which recently saw Intel Corp. (NASDAQ:INTC) sign a pact with Tata Electronics to explore local manufacturing and advanced packaging.
Currently, iPhone display panels come from Samsung Display, LG Display, and BOE Technology Group.
CG Semi is investing 7,600 crore Indian rupees in two state-of-the-art OSAT facilities, G1 and G2, with central and state government support and partnerships with Renesas and Stars Microelectronics.
The company aims to begin commercial production in 2026 in line with the India Semiconductor Mission.
Analyst Commentary On India Strategy
Apple stock has gained 10% year-to-date. It continues to face stock pressure from tariffs and trade uncertainty tied to imports from China and India, but a leading Wall Street analyst sees India as a major strategic win.
Wedbush analyst Dan Ives said a potential U.S.–India trade deal would significantly strengthen Apple’s supply chain.
Ives said India has emerged as a serious challenger to China’s dominance in tech manufacturing, citing its deep engineering talent, growing supply chain infrastructure, and large technology workforce.
He called India one of the most closely watched trade negotiations for tech investors.
According to Ives, Apple stands to benefit the most if a deal materializes, especially given its rapid shift of iPhone production and assembly to India.
He said Apple has already moved more than 50% of iPhone production to India, based on recent earnings call commentary, calling the pivot one of CEO Tim Cook’s smartest decisions in recent months.
Ives dismissed the idea of iPhone manufacturing moving to the U.S., despite pressure from President Donald Trump, saying it is not economically viable.
He estimated U.S.-made iPhones could cost around $3,500 and said relocating production would take five to ten years.
He added that Cook’s role has increasingly blended business leadership with political navigation as Apple manages ongoing tariff negotiations, calling Cook’s handling of the supply chain challenges a potential “Hall of Fame moment” for his legacy.
AAPL Price Action: Apple shares were up 0.10% at $274.89 during premarket trading on Wednesday, according to Benzinga Pro data.
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