Apple holds early talks with CG Semi on iPhone display chip packaging in India

Apple is holding preliminary talks with Indian chipmaker CG Semi about handling local assembly and packaging of components for future iPhone models.

The focus is on the OSAT stage—assembly, packaging, and testing of microchips. CG Semi is currently building one of India’s first large facilities of this kind. According to sources, discussions are at a very early stage, and Apple has yet to decide which chips might move to the Indian site. Early candidates are expected to be parts related to displays.

Today, OLED panels for Apple smartphones come from Samsung Display, LG Display, and BOE, while display driver ICs are produced by Samsung, Novatek, Himax, and LX Semicon. Those chips are largely assembled and packaged in South Korea, Taiwan, and China. Bringing an Indian partner into the mix could shift that well-established setup.

If a deal materializes, it would strengthen India’s position in Apple’s global supply chain. The company is already moving iPhone assembly to the country to lessen its reliance on Chinese manufacturing. These new talks look like a natural extension of that long-term diversification drive.

Meanwhile, India’s broader interest in semiconductors is gaining momentum. Recently, Intel announced a partnership with Tata Electronics to explore chip manufacturing and advanced packaging at Indian plants. The development underlines the country’s growing weight in global microelectronics.

Sources also stress that Apple’s quality bar is exceptionally high, and ongoing talks alone do not guarantee CG Semi a place in the supply chain. Even so, the prospect of collaboration is seen as a strong industry signal and a sign that India is steadily establishing itself as a promising base for high-tech production.