Dixon Technologies partners with Taiwan’s Inventec to manufacture PC products in India

Dixon Technologies has entered into a joint venture agreement with Taiwan’s Inventec to make notebook and desktop PC products, servers and components in India.

As per the JV agreement, Dixon IT Devices Pvt Ltd will be 60% owned by Dixon and 40% owned by Inventec.

Dixon said the JV arrangement is in line with the strategy of the company to grow in this business segment and to achieve strategic goals.

The JV agreement gives Dixon the right to nominate 3 directors on the board of the JV company. Inventec has the right to nominate 2 directors.

Inventec, founded in 1975, manufactures computers, phones, laptops, and servers. Inventec is one of the world’s top five PC ODMs (original design manufacturers).

Commenting on the JV, Atul B. Lall, Vice Chairman & Managing Director, Dixon, said: “We are delighted to partner with Inventec, a global leader in IT hardware manufacturing. This joint venture marks a significant milestone for Dixon as we expand our portfolio into high growth segments of notebooks & servers.

“With Dixon’s operational efficiency and local expertise and Inventec’s technological prowess in the IT hardware segment, we shall be striving to produce high-quality products while driving technological innovation and contributing to the development of India’s IT infrastructure. The partnership aligns with the Government of India’s vision of promoting domestic manufacturing & self-reliance under the Make in India scheme,” said Lall.

In recent years, Inventec has actively invested in automotive electronics, cloud computing, wireless communications, smart devices, and the Internet of Things.

Jack Tsai, President of Inventec, said Dixon stands as one of India’s most prominent electronics manufacturing firms, distinguished by its mature production systems, high degree of automation, and strong alignment with local government policies. “This joint venture utilizes Dixon’s robust domestic manufacturing capabilities and Inventec’s strengths in the capabilities of engineering, supply chain and systems integration. The partnership significantly enhances our operational agility and service coverage within the Indian market. By offering a more diversified manufacturing footprint, we aim to strengthen supply chain resilience, optimize cost-efficiency, and align with Inventec’s long-term globalization strategy,” said Tsai.

Dixon, a major player in India’s electronics industry, began its journey in 1993 from a modest rented facility in Noida. The company’s first significant order came from Lucky Goldstar, which later rebranded to LG, a South Korean multinational. Last year, Dixon's subsidiary, Padget Electronics, entered into an agreement to manufacture HP laptops, desktops, and all-in-one PCs in Tamil Nadu. Padget Electronics is constructing a 3 lakh-square-foot plant in Oragadam, Tamil Nadu, which is expected to generate about 1,500 jobs.

Dixon Technologies has made substantial gains from India's Production-Linked Incentive (PLI) scheme, particularly in mobile phone manufacturing. The PLI 2.0 scheme for IT Hardware provides a 5% incentive on net incremental sales over six years for qualifying companies, with the aim of bolstering domestic production of laptops, tablets, PCs, and servers.

During Dixon’s third-quarter earnings call, management revealed plans to launch a display fabrication business with an estimated $3 billion investment. A significant portion of this investment is expected to be supported by the government through the India Semiconductor Mission (ISM) 2.0. Lall mentioned during the call on January 20 that the company is in active talks with a global tech partner to establish a state-of-the-art display fabrication plant. This initiative will focus on localising production, improving supply chain management, and driving cost efficiencies, particularly for mobile devices, IT hardware, and consumer electronics.