Apple Begins Early Talks With CG Semi to Assemble and Package iPhone Display Driver Chips in India

 Apple is reportedly holding early exploratory discussions with CG Semi, a subsidiary of the Murugappa Group, to assemble and package semiconductor chips for iPhones in India. If realized, this would mark Apple’s first move to localize chip assembly and packaging, known as OSAT (Outsourced Semiconductor Assembly and Test), in the country, signaling a major expansion beyond its current India operations, which are largely limited to final device assembly.

image credits: Androidioszone

The initial focus of these talks is said to be on display-related components, specifically display driver integrated circuits (DDICs). Should the partnership move forward, production would take place at CG Semi’s newly established OSAT facility in Sanand, Gujarat. This potential collaboration aligns with Apple’s broader strategy to reduce its reliance on China and diversify its supply chain, with ambitions to manufacture the majority of iPhones sold in the U.S. in India by late 2026 to lessen exposure to tariff risks.

For now, discussions remain at a preliminary stage. Any formal agreement would require CG Semi to pass Apple’s rigorous audits, which cover quality standards, reliability benchmarks, and labor and ethics compliance.

CG Semi’s Indian operation is structured as a joint venture between CG Power, Japan’s Renesas Electronics, and Thailand-based Stars Microelectronics. The project involves an investment of INR 7,600 crore (around USD 870 million) over five years. Its pilot G1 production line, launched in August 2025, is already operational with a peak capacity of roughly 0.5 million units per day. A larger G2 high-volume line is planned for late 2026, targeting a scale-up to 14.5 million units per day, with full commercial production expected to begin in calendar year 2026.