Apple Inc is reportedly in discussions with Micron, Tata Group and other Indian chip manufacturers to procure semiconductors for its locally-produced iPhones.

What Happened: Apple’s demand for semiconductors is projected to reach $12 billion (around ₹1 lakh crore) by 2026, according to a report by Financial Express. By this time, the tech giant plans to shift 26% of its global iPhone production to India.

If Micron and Tata Group’s units, expected to be functional by then, can produce the required grades, they could secure substantial business from the world’s largest company.

See Also: Tata Electronics And Tokyo Electron Join Forces To Strengthen Semiconductor Infrastructure

Apple’s spending on Indian-made microchips is likely to exceed that of any other single company in the defence, aviation and auto sectors. In FY24, Apple manufactured iPhones worth $14 billion (₹1.17 lakh crore) in India, which accounted for nearly 14% of its global iPhone production.

Apple’s global semiconductor consumption has surged over threefold from $18.8 billion (₹1.57 lakh crore) in 2011 to around $72 billion (around ₹6.04 lakh crore) currently. The company initiated the production of iPhones in India under the smartphone production-linked incentive scheme through its three Taiwanese vendors in 2021.

The Indian government launched a ₹76,000-crore incentive scheme in 2022 to stimulate domestic semiconductor production. To date, five chip projects worth ₹1.5 lakh crore have been approved under this scheme, leaving about ₹10,000 crore for future projects.

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