Apple Eyes India as a Tech Hub: iPhone Assembly Now Expanding to Chip Packaging, Deals Major Blow to China

New Delhi, India – Apple is taking significant steps to make India a global technology hub. According to reports by Economic Times and Reuters, the tech giant is now planning to assemble and package key components, including chips, in India, following its ongoing iPhone manufacturing operations in the country.

Expanding Beyond iPhone Assembly

Apple is no longer limiting its operations in India to iPhone assembly. The company is reportedly in discussions with Indian chip manufacturers to locally assemble and package essential components. If successful, this move could strengthen India’s semiconductor manufacturing capabilities and reduce the U.S.’s dependence on China for key tech components.

First-Ever Chip Packaging Initiative in India

This marks the first serious consideration of chip assembly and packaging on Indian soil. Reports suggest that the operations may take place at a new OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat, being set up by the CG Semi group of the Murugappa Group. While details on the types of chips are not confirmed, they are likely to be display-related components, further integrating India into the global electronics supply chain.

Strategic Shift Away from China

Apple’s move aligns with its long-term strategy to diversify manufacturing away from China. By the end of 2026, the company aims for all iPhones sold in the U.S. to be manufactured in India, partially driven by high tariffs imposed on Chinese imports. In April, the U.S. imposed 26% tariffs on goods from India compared to over 100% on Chinese products, although many tariffs were temporarily suspended. India, therefore, emerges as a strategic and secure alternative for Apple.

Industry Impact

If executed, this initiative could boost India’s semiconductor sector, elevate its role in the global tech supply chain, and reduce geopolitical risks associated with dependence on China. Apple and CG Semi have declined to comment on the ongoing discussions, citing confidentiality until formal agreements are finalized.

This expansion signals a new era for India’s technology and manufacturing landscape, potentially positioning the country as a major global hub for high-tech assembly and chip packaging.