[News] Apple Reportedly in Talks with Micron and Tata for Major Chip Purchase from India

According to sources cited by Indian media outlet Financial Express, Apple is said to be in talks with Micron, Tata Group, and other Indian chip manufacturers to procure USD 12 billion worth of chips locally for iPhones produced in India.

Reportedly, Apple plans to shift 26% of its iPhone production to India by 2026. Industry sources cited by the report further suggest that by then, Apple will become the largest single buyer of Indian-made semiconductors, surpassing any other sectors such as defense, aerospace, and automotive.

Sources further point out that if Micron and Tata are able to produce chips that meet Apple’s requirements, a significant portion of the chips needed for iPhones will come from these companies, potentially creating substantial opportunities for the Indian semiconductor industry.

Before the outbreak of the pandemic, Apple iPhones and almost all other consumer products were manufactured in China. Following the introduction of the Production-Linked Incentive (PLI) scheme by the Indian government, potentially prompting Apple to begin shifting its production lines.

In 2022, the Indian government launched a USD 10 billion PLI scheme to stimulate domestic semiconductor production. To date, India has approved five chip manufacturing projects with a total value of roughly USD 18 billion and has reserved USD 1.2 billion for future projects.

Meanwhile, Micron’s chip plant in Gujarat, India, is expected to begin operations this year, marking the company’s first chip facility in India.

Additionally, Tata Group, in collaboration with PSMC, plans to build a packaging plant in Gujarat, with operations slated to commence in 2026, producing chips using 28nm, 40nm, 55nm, 90nm, and 110nm nodes.

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(Photo credit: Tata Group)