Apple is reportedly in exploratory conversations with at the least one accomplice to probably deal with iPhone chip meeting and packaging in India for the primary time. Listed below are the main points.

Apple and India tighten their manufacturing ties

Based on The Financial Occasions, Apple is in preliminary talks with CG Semi to assemble and package deal unspecified future iPhone chips.

CG Semi is a semiconductor firm in India, which has been constructing one of many nation’s first main outsourced semiconductor meeting and take a look at (OSAT) amenities.

Based on The Financial Occasions, it’s at the moment unclear which chip CG Semi can be assembling and packaging:

“The businesses are within the very preliminary phases of dialogue,” one among [their sources] mentioned. “It’s not clear what chips can be packaged out of the Sanand facility at this stage, however it’s going to probably be show chips.”

As The Financial Occasions explains it, Apple’s iPhone OLED panels are sourced from Samsung Show, LG Show, and BOE. On the identical time, its show driver built-in circuit (DDIC) comes from Samsung, Novatek, Himax, and LX Semicon, “which primarily rely on South Korean, Taiwanese or China-based models for getting chips manufactured and packaged.”

If the deal goes by way of, it’s going to mark yet one more step in Apple’s ever-increasing reliance on India, which has served as the corporate’s main meeting hub in its diversification away from China.

Curiously, this has been a busy week for chip manufacturing information coming from India, as Intel has simply struck a partnership with Tata Electronics. Right here’s The Financial Occasions:

Based on the settlement of December 8, the businesses will discover manufacturing and packaging of Intel merchandise for native markets at Tata Electronics’ upcoming fab and OSAT amenities. They mentioned they’d discover collaboration for superior packaging in India. Packaging is vital within the chip enterprise as a result of it protects inside components and improves effectivity, amongst different elements.

Be it as it might, these are reportedly simply preliminary discussions. Even when the talks progress, one supply instructed The Financial Occasions that this could possibly be “the start of an uphill climb” for CG Semi, given Apple’s high quality necessities:

“Apple is already in talks with a number of corporations for a lot of different provide chain capabilities, and only a few will find yourself on their provider listing,” the particular person mentioned.

CG Semi, for its half, has the Indian authorities on its nook. The corporate’s ₹7,600 crore OSAT plant has central and state authorities assist, as a part of the India Semiconductor Mission, which goals to determine the nation as a semiconductor and show manufacturing hub.

Whether or not an uphill climb or not, scoring a take care of Apple would certainly let the Indian authorities and CG Semi say that this imaginative and prescient is correct on observe.

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