Dixon Partners With Taiwan's Inventec to Manufacture PCs in India

Dixon Technologies, a domestic electronics maker, has partnered with Taiwan-based Inventec Corporation to produce notebook and desktop PC products, including servers and componentry, in India.

“The arrangement is in line with the strategy of the company to grow in this business segment and to achieve strategic goals and expansion of business,” Dixon said in an exchange filing.

According to the JV agreement, the business will establish Dixon IT Devices Private Limited as a wholly-owned subsidiary, with Dixon owning 60% of the total issued and paid-up share capital and Inventec owning the remaining 40% on a fully diluted basis.

According to the document, no consideration has been exchanged between the parties because of the financial parameters of the sale. Dixon's stock fell around 1% yesterday, closing at INR 16,481.70 per share on the BSE.

Notably, the company has become a major local participant in the electronics manufacturing industry by regularly meeting its PLI targets and by obtaining government incentives and subsidies, particularly for the production of smartphones. It now produces smartphones for Jio, Xiaomi, Samsung, and Motorola.

Dixon has begun working on a project for display modules and is now considering manufacturing components like camera modules, mechanical enclosures, and lithium ion batteries. This development follows a report that surfaced two days ago that Dixon is looking to enter the electronics component manufacturing space (ECMS).