Apple is in preliminary discussions with Indian chipmakers to assemble and package iPhone components. This marks the first time the company has pursued component packaging operations in India.

The initiative is part of Apple’s strategy to de-risk its supply chain and expand its manufacturing footprint in the country. Discussions reportedly involve CG Semi, owned by the Murugappa Group, for a potential outsourced semiconductor assembly and test (OSAT) facility.

While the specific components have not been disclosed, display-related chips are considered a possibility for packaging. This move follows Apple’s efforts to increase overall iPhone manufacturing in the country.

The company maintains a goal to produce a majority of its U.S.-bound iPhones in India by the end of 2026.