According to reports, the government will examine Dixon Technologies’ recent deals with Chongqing Yuhai and Kunshan Q Technology, two Chinese electronics companies, as well as other domestic electronics manufacturers.
According to a media agency, an official told them that when their application falls under Press Note 3 regulations, proper process would be followed. According to Press Note 3 regulations, foreign investments from nations that share a land border with India—such as China, Afghanistan, Pakistan, Nepal, Bhutan, Bangladesh, and Myanmar—must have government clearance.
Dixon Signing Agreement with Chinese Firms
Dixon reportedly signed contracts with two Chinese electronics component companies, Chongqing Yuhai Precision Manufacturing and the Indian branch of Kunshan Q Technology, just two days ago.
The agreements cover the production and distribution of electronic components used in various electronic devices, including laptops and mobile phones. According to the agency, Dixon intends to form a joint venture with Chongqing Yuhai to manufacture and supply precision components for laptops, mobile phones, the Internet of Things, automobiles, and other products.
Dixon is expected to own 74% of the JV, with Chongqing owning the remaining shares. Dixon also inked a legally binding agreement with Kunshan Q Tech Microelectronics India (often referred to as Q Tech India) and its shareholders, Kunshan Q Technology International and Q Technology Singapore, for the proposed purchase of a combined 51% stake in Q Tech India.
Dixon also waited for the Indian government’s consent more than a month ago before pursuing a cooperation with China’s HKC for its display module manufacturing facility.
Foxconn Already Replaced Chinese Engineers with US and Taiwan Specialists
The multinational electronics powerhouse Foxconn has already devised a different strategy to save its iPhone 17 production in India by bringing in specialists primarily from Taiwan and the US.
This development comes a day after it was revealed that Beijing had “forced” Foxconn Technology Group to return its Chinese engineers and technicians from its Tamil Nadu plant. Recalling workers is perceived as a tactic to thwart Western IT companies’ attempts to move their manufacturing out of China.
Additionally, it is perceived as an extension of the diplomatic dispute between China and India. The export of essential machinery needed to upgrade assembly lines to produce the iPhone 17, which is anticipated to be released by September of this year, was already being restricted by Chinese officials.
As anticipated, a media article stated that Foxconn already had a strategy to hire engineers primarily from the US and Taiwan. Furthermore, the problem only relates to the upcoming debut of the new iPhone 17 series.
For earlier versions, Indian technicians are already in charge. The replacement of the Chinese experts might take up to two months. The Ministry of Electronics and Information Technology (Meity), according to the report, stated that Foxconn and Apple have been aware of the potential loss of Chinese engineers for the past four to five months.
The import of essential equipment can still be an issue even if technicians are replaced. The iPhone 17’s price may rise as a result. However, according to industry experts, the average compensation for a US expert is approximately six times that of a Taiwanese expert.
Further, the average compensation for a Taiwanese expert is approximately 50–60% higher than that of a Chinese engineer. This could result in an increase in the production costs for the company.
Leave a Reply