This deal is significant as it marks a huge shift in Apple’s global supply chain, with the tech giant projected to move 26 percent of its iPhone production to India by 2026. If successful, this deal would bring a significant business boost to Indian companies, propelling them into the fast lane of the global tech supply chain.
Apple has began negotiations with Micron, Tata Group, and other chip manufacturers in India to source USD 12 billion worth of made-in-India semiconductor supplies for its iPhone production. This transition comes after the launch of the Indian government’s Production-Linked Incentive (PLI) scheme, which has made the country an attractive hub for large-scale manufacturing.
By 2026, Apple’s demand for semiconductors in India will be unmatched, making it the largest consumer of locally manufactured chips. Other sectors like defense, aviation, and automotive will also drive demand, but Apple’s scale is expected to outshine all competitors in the region. In FY24, Apple produced iPhones worth USD 14 billion in India, making it the largest manufacturer in the country. This already constitutes about 14 percent of Apple’s global iPhone production.
Just three years ago, Apple produced all its iPhones and most of its consumer products in China. Now, India is becoming a key player in Apple’s worldwide operations, driven by this strategic shift. India aims to attract more global players in the rapidly growing USD 1 trillion chip industry by 2030.
