Apple is reportedly opening talks with Indian semiconductor manufacturers to explore the assembly of its next‑generation iPhone chips on Indian soil. The move reflects a broader strategy to reduce dependence on traditional Asian hubs, mitigate geopolitical risks, and tap into India’s rapidly expanding electronics ecosystem. By shifting part of its chip‑assembly footprint to India, Apple hopes to align with the Indian government’s Make in India push, benefit from lower logistics costs, and secure a more resilient supply chain amid ongoing US‑China tensions. The discussions, first reported by Economic Times, could reshape the global semiconductor map if they materialise.
Strategic shift in Apple’s supply chain
Apple’s supply chain has long been anchored in Taiwan, South Korea and China, where the majority of its A‑series and M‑series processors are fabricated and assembled. Recent export controls, rising labor costs and supply‑chain disruptions have prompted the tech giant to diversify. Establishing an assembly line in India would not only spread risk but also allow Apple to comply with local content requirements for the Indian market, potentially unlocking tax incentives and faster market entry for new devices.
Indian semiconductor landscape
India’s semiconductor sector has accelerated under the Make in India initiative, attracting billions in foreign investment and fostering a cadre of domestic firms capable of advanced packaging and testing. While the country still lags in wafer fabrication, its assembly‑test (AT) ecosystem has matured, offering capabilities that meet Apple’s stringent quality standards.
| Company | Facility Location | Technology Node | Annual AT Capacity (million units) |
|---|---|---|---|
| Vedanta Electronics | Haryana | 7‑nm advanced packaging | 12 |
| Foxconn India | Gujarat | 5‑nm advanced packaging | 18 |
| Wistron Technology | Karnataka | 10‑nm packaging | 9 |
| Amkor Technology (India unit) | Maharashtra | 7‑nm | 15 |
Potential partners and capabilities
Among the firms courting Apple, Foxconn’s new Gujarat plant stands out for its 5‑nm advanced packaging line, a capability previously reserved for Taiwanese partners. Vedanta Electronics, backed by a $2 billion government grant, offers a 7‑nm packaging line that could handle high‑volume iPhone production. Amkor’s established test operations provide a ready‑made quality‑control framework, while Wistron brings experience in assembling flagship smartphones for other OEMs. Apple’s engineering team is expected to conduct a rigorous audit of these facilities, focusing on yield rates, contamination controls and intellectual‑property safeguards.
Challenges and timelines
Transitioning chip assembly to India is not without hurdles. The country’s skilled‑labor pool for ultra‑fine packaging remains limited, necessitating extensive training programmes. Infrastructure bottlenecks—particularly reliable power and water supplies—must be addressed before mass production can commence. Moreover, Apple will need to negotiate supply‑chain contracts that protect its proprietary designs while complying with India’s export‑control regulations. Analysts estimate a pilot‑line could be operational by Q4 2026, with full‑scale production potentially rolling out in 2028.
Implications for the global market
If Apple finalises a partnership, the ripple effects could be profound. Competitors may accelerate their own diversification strategies, prompting a broader shift of high‑value semiconductor activities to emerging hubs. For India, securing Apple as a client would validate its semiconductor ambitions, likely spurring further policy incentives and foreign investment. Conversely, traditional hubs such as Taiwan and South Korea could face reduced order volumes, pressuring them to innovate or consolidate.
In sum, Apple’s exploratory talks with Indian manufacturers signal a decisive step toward a more geographically balanced supply chain. While technical, regulatory and logistical challenges remain, the potential rewards—in resilience, cost savings and market access—make India an increasingly attractive destination for the tech giant’s next wave of chip assembly.
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