Apple’s Bold $12 Billion Play with Micron & Tata Group

In the latest turn of events, Apple, the world’s most valued mobile manufacturing company, is in talks with Micron, Tata Group and other chip manufacturers to meet the semiconductor requirement for the iPhone being produced in India. According to industry experts, the value of the deal may go as high as $12 billion by 2026. They further mentioned that Apple will be able to shift 26% of its global iPhone capacity to India in the next two years. In 2024, Apple produced iPhones worth $14 Billion in India, which constitutes 14% of Apple’s global iPhone production.

Apple’s History Of Semiconductor Consumption

According to Financial Express, “Apple’s global semiconductor consumption increased over threefold from $18.8 billion in 2011 to cross $67 billion in 2022. Currently, it stands at around $72 billion. Apple produces multiple high-end consumer products – iPhones, iPads, Macs, Apple watches and AirPods – all of which use semiconductors. In India, it began producing iPhones under the smartphone production-linked incentive scheme through its three Taiwanese vendors in 2021.

Taiwan Semiconductor Manufacturing Company (TSMC) is a key supplier for Apple, handling the production of its chips. Experts estimate that Apple accounts for over 26% of TSMC’s global sales, making it the third-largest chip consumer worldwide. Until three years ago, Apple manufactured all its iPhones and nearly all its other consumer products in China. Alongside other major tech manufacturers from the U.S., Japan, and China, Apple made China the largest semiconductor consumer, purchasing over 50% of the globally produced chips.

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