Apple Explores iPhone Chip Assembly in India: Could CG Semi Become Key Supplier?

When Apple first allowed iPhone Pro models to be manufactured in India, people thought that was the end of the discussion. Recent reports indicate that the Cupertino giant is not yet done with the negotiation.

Apparently, Apple is considering building its first iPhone chip assembly and packaging facility in India. This is a part of the company's plans to diversify its production outside China.

CG Semi and the India OSAT Rise

According to The Economic Times, this is in the early stages, and the firm has already engaged a new company called CG Semi, which is a growing semiconductor firm in India.

CG Semi has been working on the development of one of the first major outsourced semiconductor assembly and test (OSAT) facilities in India at Sanand. Although there is no clarity regarding the exact chips being produced, market insiders indicate that display-related chips might be targeted.

The current supply of display driver ICs (DDICs) is from Korean, Taiwanese, and Chinese companies, while Apple's OLED displays are currently acquired from Samsung Display, LG Display, and BOE.

Importance of Chip Packaging To Strategists

Chip packaging is a critical step in semiconductor manufacturing, safeguarding internal components while enhancing performance and efficiency. With Apple potentially expanding chip packaging operations to India, the tech giant could reduce its reliance on East Asian suppliers.

It will also benefit India as one of the leading semiconductor hubs. India Semiconductor Mission knows of this possibility.

India is Getting Attention From Chipmakers

Apple is not the only one investing in India. Intel has recently partnered with Tata Electronics to explore local manufacturing and advanced packaging solutions. This is another sign that the importance of the Indian market within the global chip supply chain continues to grow, as tech giants look to disrupt the mainstream supply chain model.

Challenges Lying Ahead for CG Semi

Despite the talks being held, sources said that obtaining an Apple contract may be difficult. Apple holds high standards when it comes to product quality.

For a few suppliers, the company's requirements are met. If initial talks proceed well, the path ahead for CG Semi to meet Apple's high standards may be quite tenuous.