Apple Inc. is reportedly engaging in discussions with Indian chip manufacturers, including Micron and Tata Group, to procure semiconductors for its locally-produced iPhones. According to a report by Financial Express, Apple’s demand for semiconductors is expected to reach $12 billion by 2026. As part of its plans, the tech giant aims to shift 26% of its global iPhone production to India by that time.
If Micron and Tata Group’s units, which are anticipated to be operational by then, can produce the required grades of semiconductors, they stand a chance to secure significant business from Apple, the world’s largest company. Apple’s spending on Indian-made microchips is projected to surpass that of any other single company in the defense, aviation, and auto sectors.
In the fiscal year 2024, Apple manufactured iPhones worth $14 billion in India, accounting for nearly 14% of its global iPhone production. Over the years, Apple’s global semiconductor consumption has experienced a substantial increase, growing from $18.8 billion in 2011 to approximately $72 billion at present.
In 2021, Apple initiated the production of iPhones in India under the smartphone production-linked incentive scheme, collaborating with three Taiwanese vendors. Recognizing the potential of the Indian market, the government launched a $10 billion incentive scheme in 2022 to stimulate domestic semiconductor production. So far, five chip projects worth around $18 billion have been approved under this scheme, leaving approximately $1.2 billion for future projects.
It is important to note that artificial intelligence was used as a secondary aid in the writing of this story.