Apple is set to significantly boost its semiconductor procurement from India, with plans to source $12 billion worth of chips by 2026. This move is part of Apple’s broader strategy to shift 26% of its global iPhone production to India, marking a pivotal moment for the Indian semiconductor industry and its role in the global tech supply chain.
India’s Semiconductor Revolution
India is emerging as a major hub for semiconductor manufacturing, thanks to substantial investments from key players like Micron and Tata Group. Micron is developing a ₹22,516 crore facility in Gujarat, while Tata Group is working on ambitious projects, including a ₹91,000 crore plant in Dholera and a ₹27,000 crore unit in Assam. These developments are set to fulfill a significant portion of Apple’s semiconductor needs and bolster India’s position in the global electronics market.
A Strategic Shift Away from China
Apple’s move to source semiconductors from India comes in response to growing geopolitical tensions and supply chain disruptions that have affected its operations in China. Historically, Apple relied almost entirely on China for its iPhone and electronics manufacturing. However, with global semiconductor consumption soaring from $18.8 billion in 2011 to $72 billion in 2024, diversifying its supply chain has become essential. While TSMC remains a key supplier, Apple’s increasing reliance on Indian chip manufacturers reflects a strategic shift to reduce dependency on any single country.
Government Support Boosting Semiconductor Growth
India’s government is playing a crucial role in developing the semiconductor ecosystem. In 2022, the Indian government introduced a ₹76,000 crore semiconductor incentive scheme, which has already led to the approval of five major projects totaling ₹1.5 lakh crore.
This support includes fiscal incentives covering up to 50% of project costs, with ongoing discussions to attract additional global players to India’s semiconductor sector. The global semiconductor industry, projected to reach $1 trillion by 2030, will benefit significantly from India’s enhanced production capabilities.
What Does This Mean for You?
India’s growing semiconductor industry promises to bring more job opportunities, technological advancements, and potentially lower costs for electronics. As Apple’s investment highlights India’s expanding role in the global tech landscape, the implications for everyday life could be substantial. How do you think this shift will impact your daily life? Will it lead to better technology, more affordable electronics, or other benefits? Share your thoughts and opinions in the comments below!
