Apple is reportedly in early talks with Indian chipmakers to assemble and package certain components for the iPhone, according to the Economic Times on Wednesday, citing sources familiar with the matter.

This marks the first time Apple has considered assembling and packaging some chips in India. While it remains unclear which chips would be handled at the Sanand facility in Gujarat, they are believed to be display-related components.

Apple has held discussions with CG Semi, an OSAT (outsourced semiconductor assembly and test) facility under the Murugappa Group that is being built in Sanand, the report said. CG Semi declined to comment on market speculation or specific customer discussions.

The move aligns with Apple’s broader plan to produce the majority of iPhones sold in the U.S. at Indian factories by the end of 2026, accelerating efforts to mitigate potential higher tariffs in China, its main manufacturing hub.