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Tag: Dixon

  • Govt Puts Dixon’s China-Linked JV Firms Under Scanner

    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.

  • Scheme to Boost Electronic Component Production Draws 70 Applications

    According to reports, the government has received 70 applications for its project to manufacture electronics components worth INR 22,919 Cr. The development was confirmed by Union Minister Ashwini Vaishnaw, who also noted that small and medium-sized businesses make up the majority of the applications.

    Vaishnaw informed a news source that the plan to manufacture electronics components has been well appreciated. About 70 applications have been received in the 15 days after the application was opened.

    This production-linked incentive (PLI) programme for non-semiconductor electronics components was approved by the union cabinet in March. The plan is to draw in INR 59,350 Cr in investment, which will lead to INR 4,56,500 Cr in output and the creation of 91,600 new direct jobs in addition to numerous indirect positions. With a one-year gestation period, the system has a six-year duration.

    A portion of the incentive’s payout is also correlated with meeting employment goals. The government stated when the plan was approved that it offers Indian manufacturers unique incentives designed to help them overcome particular obstacles for different types of parts and sub-assemblies, enabling them to develop technological capabilities and realise economies of scale.

    Scheme will Benefit Various Sector

    The initiative is expected to help industries like telecommunications, consumer electronics, automotive, and medical devices. Vaishnaw also announced last month that the scheme’s online portal would soon be activated and that the guidelines had been finalised.

    Global manufacturers Foxconn, Tata Electronics, Zetwerk, and Dixon are reportedly considering investments in India via the PLI scheme, despite the fact that the initiative’s investors have not been made public. These multinational corporations are planning their manufacturing hubs in collaboration with various states.

    For example, Foxconn, Apple’s biggest contract manufacturer, has already established a display module assembly facility in Tamil Nadu and begun conducting trial runs. Additionally, the “Tamil Nadu Electronics Components Manufacturing Scheme (ECMS)” was introduced a few weeks ago by Tamil Nadu Chief Minister MK Stalin. This plan seeks to create 60,000 jobs in the state and draw in investments of INR 30,000 Cr.

    Gujarat and UP Scaling Up Efforts to Lead the Race

    According to various media reports, Gujarat and Uttar Pradesh are also vying to become major centres for the production of electronics. Uttar Pradesh is working on a draft policy that might be finished in a few weeks, while Gujarat has presented a draft policy to encourage and expand the manufacturing of electronics components.

    Finance Minister Nirmala Sitharaman stated during her 2025–2026 budget speech that the government is prepared to provide the local electronics equipment industry with a much-needed boost. India produced electronics worth INR 9.52 Lakh Cr in FY24 compared to INR 1.90 Lakh Cr in FY15, according to the Economic Survey 2024–25.

  • Dixon to Enter Manufacturing of Electronic Components

    According to reports, Dixon Technologies, a domestic electronics maker, is joining the nation’s electronics component manufacturing sector (ECMS) for captive needs before branching out to exports. Dixon’s CEO, Atul Lal, told a media agency that the company’s next growth phase will involve electronics components.

    Dixon is currently considering producing parts like camera modules, mechanical enclosures, and lithium-ion batteries after apparently beginning work on a project for display modules. According to Lal, the business has already launched a display module project.

    The company is assessing a number of other component types, including mechanical enclosures, camera modules, and lithium-ion batteries. Dixon is therefore taking the evaluation very seriously and will be actively involved in ECMS.

    Lal added that the components will first be manufactured for internal use before being expanded to meet the demands of the external market.

    Tata Electronics to Join the Sector

    According to various reports, Tata Electronics plans to invest INR 2,000 Cr in the production of electronic components as part of the Centre’s INR 23,000 Cr incentive programme. The announcement follows Union Minister Ashwini Vaishnaw’s announcement a few days earlier that the electronics components scheme’s criteria have been finalised and that its web portal will soon be established.

     According to Vaishnaw, the plan is anticipated to increase domestic output, generate employment, and lessen reliance on imports. An INR 22,919 Cr production-linked incentive (PLI) programme for non-semiconductor electronics components was authorised by the Union Cabinet last month.

    A few days ago, Vaishnaw also stated that in order for makers of electronics components to take advantage of the government’s ECMS, they must create internal design teams and meet Six Sigma quality standards.

    Taking note of the requirement, Lall stated that Dixon will talk about it within the team and welcomes the directive for Six Sigma level and design team formation.

    Dixon Enabling Computing and Smartphone Manufacturing Capabilities

    In recent months, Dixon has partnered with laptop and smartphone manufacturers Vivo and HP in the electronics manufacturing sector. It signed an agreement with Vivo India to establish a joint venture for the opening of an original equipment manufacturer (OEM) facility.

    Vivo India will own 49% of the joint venture, while Dixon will own 51%. Under the production-linked incentive 2.0 programme, Dixon Technologies’ wholly owned subsidiary Padget Electronics and Asus entered an agreement in September of last year to produce notebooks for the Taiwanese tech giant.

    Dixon and the Tamil Nadu government also inked a memorandum of understanding (MoU) for the establishment of a manufacturing plant close to Chennai, which will cost INR 1,000 Cr in total. It is anticipated that the proposed facility will give 5,000 individuals in the state new job prospects.

    Additionally, the publicly traded firm with its headquarters in Noida assembles smartphones for companies including Oppo, Xiaomi, and Google.

    It is important to remember that Dixon is negotiating the establishment of a $3 billion display fabrication plant in India. Lall made the statement on the company’s Q3 results call in January.

  • Google Parent Considering Moving Pixel Smartphone Manufacturing to India

    According to reports, Alphabet, the parent company of Google, is in advanced negotiations to move some of the manufacturing of its Pixel smartphones from Vietnam to India. According to a media report, two weeks ago, Alphabet concluded the initial round of talks with its contract manufacturers, Foxconn and Dixon Technologies.

    A media house has also been informed by two industry officials that the corporation intends to localise the production of certain smartphone components, including batteries, chargers, fingerprint sensors, and enclosures. The majority of components are currently imported from the United States. Since President Donald Trump imposed significant tariffs on Vietnam, the Pixel manufacturer intends to be on the safer side.

    Trade War Between the US and Vietnam Calling for the Shift

    While the United States announced a 46% duty on Vietnamese imports, India is subject to a far lower rate of 26%. The 10% baseline tariffs remain in effect even though Trump declared on April 9 that reciprocal duties would be suspended for 90 days.

    However, China had no reprieve. The Trump-led administration maintained the 145% penalty on the Asian economic powerhouse as a form of retribution against the US reciprocal tariff policy, even though other countries were excluded from it. In 2023, the firm announced that it would start producing its Pixel 8 series smartphones in India.

    A year later, it signed a contract with Dixon Technologies, a local contract manufacturer, to begin production. Last year, the multinational tech giant began negotiations with Foxconn to build its Pixel series.

    Google and Apple Locking Horns on India

    At the time of Google’s partnership with Dixon, it was determined that the contract manufacturer would produce one lakh Pixel smartphones in the country each month. Out of those, approximately 25% to 30% of the units are scheduled for export.

     Foxconn has been producing 43,000 to 45,000 units per month for Alphabet, according to a media report. This initiative coincides with rival Apple’s plans to boost its iPhone manufacture in India. The goal of Foxconn, the Indian contract maker of iPhones, is to boost production from 12 million to 25 million handsets. The nation’s electronic manufacturing sector is poised to grow into a massive potential.

     At the moment, the nation produces roughly 33 crore mobile phones. As per the Economic Survey 2024-25, India has reduced its dependency on imports of cellphones since 99% of them are manufactured in India alone.

    Some Pixel units are manufactured in China in addition to Vietnam and India. In an attempt to lessen its dependency on Chinese manufacturing, Google moved the production of Pixels to Vietnam in 2023, mostly through Foxconn and Compal. According to reports, last year almost half of all high-end Pixel models were put together in Vietnam.

  • Dixon wants to Construct a $3 Billion Display Fabrication Plant in India

    Dixon Technologies, an electronics company, is in talks to establish a $3 billion display fabrication plant in India as part of its expansion into the electronics components market. During the Q3 results call, Dixon’s managing director, Atul Lall, made the announcement. He claimed that the giant from Noida is in negotiations to develop this facility with a multinational tech company. According to Lall, the company is actively negotiating with a worldwide technological partner to establish a top-tier display factory, which is a crucial component in the consumer electronics, IT hardware, and mobiles sectors. The industrial giant hopes to reduce costs, gain control over the supply chain, and localise output via this entity. In order to proceed with this initiative, Dixon is also awaiting the center’s guidelines for the India Semiconductor Mission (ISM) phase 2.

    How Firm Plans Utilise Funds?

    Regarding the capital investment, Lall stated that approximately $3 billion will be invested in the project at first, with 60% going towards televisions and 15%–12% going towards the production of mobile phones. It’s important to remember that the business wants to use government funding to support this endeavour. In terms of finances, Dixon reports that its consolidated revenues were INR 10,461 Cr at the end of the December 2024 quarter, up 117% from INR 4,821 Cr in the same quarter of the previous fiscal year.

    More Details About the Proposed Manufacturing Unit

    When it comes to producing devices and products, India’s electronics manufacturing sector has matured. A robust component ecosystem is necessary to maintain and expand. In addition to mechanical and other modules, the company has also introduced a display module that will be operational in the upcoming two to three quarters, according to Lall.

    In collaboration with HKC, the firm has also decided on a location for display manufacture, and it anticipates that production will begin in the first or second quarter of the upcoming fiscal year. Trial production of Dixon’s specialised IT hardware manufacturing facility is scheduled to start in February, and mass production is scheduled for the first quarter of FY25–26. Devices for Asus and HP will be produced in large quantities by the facility. According to Lall, mass production for Acer and Lenovo has already started.

    India’s PLI Scheme Attracting Players

    At the same time, Dixon and manufacturing giant Foxconn have recently exhorted Indian authorities to settle their outstanding dues, which amount to INR 700 crore. This development has occurred recently. These incentives are available to both giants through the Centre’s production-linked initiative (PLI) program. Dixon has recently expressed optimism that the nation’s manufacturing will increase. For example, it signed an agreement with Vivo India last month to establish an OEM plant through a joint venture. Dixon’s subsidiary Padget Electronics and HP India inked a memorandum of understanding (MoU) in September 2024 to produce laptops and personal computers (PCs).

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  • Dixon and Foxconn Call on Government to Pay Off Outstanding Subsidies

    According to reports, electronics companies Dixon Technologies and Foxconn have pleaded with Indian authorities to pay INR 700 Cr in outstanding debts. The payments relate to the subsidies covered by the Centre’s production-linked initiative (PLI) program that the two Apple vendors are eligible to receive. According to a media citing, if the government makes the money available, Foxconn might get up to INR 600 Cr, while domestic Dixon might earn INR 100 Cr. Authorities are allegedly examining the two requests at this time, according to sources. Even though the Centre has allotted more than INR 41,000 Cr for the smartphone PLI scheme, certain companies have not yet received their share of the subsidies since they have not met their production targets.

    What the Argument is All About?

    Dixon and Foxconn have both maintained that they qualify for a portion of the unallocated funding. According to the report, Foxconn produced iPhones valued at INR 30,000 Cr in the fiscal year 2022–2023 (FY23), which is significantly more than the INR 20,000 Cr benchmark set by the government. In FY24, Dixon, a domestic company, produced cellphones valued at INR 8,000 Cr, surpassing the INR 6,000 Cr goal. Electronics manufacturers are eligible for subsidies under the INR 41,000 Cr PLI scheme if they surpass specific yearly value-based limits. Additionally, the program gives eligible applicants who surpassed their predetermined output any unused subsidies that were due to applicants not reaching their set goals.

    Government has Put Scanner on Dixon

    Dixon’s case, though, seems to be a complex one. The Centre is allegedly investigating whether the domestic electronics maker invested in new ventures to produce Xiaomi smartphones or if “machines were merely shifted out of another factory” that had previously put together the Chinese brand’s products. This occurs as a growing number of multinational industrial titans are heading straight for India to take advantage of the benefits and incentives provided by the Indian government through its numerous PLI programs. Samsung likewise rapidly increased its production in India, even as Apple manufactured $14 billion worth of iPhones there in FY24.

    An Important Test for Modi Government

    Modi’s industrial policy aspirations are put to the test in the unallocated funds issue, despite the comparatively little amount of money at stake. As they diversify beyond China, businesses want to see the administration implement the policies that have resulted in large investments. For example, Apple partners assembled $14 billion worth of iPhones domestically during the previous fiscal year. Samsung Electronics Co. of South Korea has also used the scheme to increase exports.

    As India attempts to attract chipmakers and giant corporations like Microsoft Corp., which intends to invest billions in the most populous nation in the world to promote cloud computing and artificial intelligence, the stability of Indian policymaking becomes even more crucial.

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  • Dixon Technologies Announces the Creation of Dixon Teletech, A Wholly-Owned Subsidiary

    Dixon Technologies, a manufacturer of electronics hardware, announced on 5 November 2024 that Dixon Teletech, a wholly-owned subsidiary, would be incorporated to produce parts for IT hardware products. With orders from the top four laptop brands in the nation—HP, Lenovo, Acer, and Asus—the contract manufacturer is establishing facilities to increase laptop assembly under the production-linked incentive plan for IT hardware.

    The company stated in an exchange filing that the wholly owned subsidiary was established with the purpose of manufacturing and dealing in a variety of information technology products, including IT hardware components, related products, equipment, and their components.

    How Does the New Arm Work?

    Dixon Teletech was formally established on September 28, 2024, and has already received a seed capital of INR 1 lakh from its parent firm for 10,000 shares at a price of Rs. 10 apiece. Dixon Teletech is prepared to manufacture a variety of IT hardware, components, and equipment, with an emphasis on increasing local laptop production.

    Dixon is establishing revenue targets with these new alliances, hoping to generate a healthy INR 3,500 crore from its IT hardware division by FY26 and a significant INR 48,000 crore over the following six years.

    Changing Regulations and the Need for Domestic Technology

    With the existing authorisation framework expiring in December 2024, India’s import regulations and policies for IT hardware are poised to become more stringent. After that, beginning in January 2025, importers will require new authorisations. Given that more international IT businesses are looking to India as a production base, Dixon’s growth couldn’t come at a better moment as global players explore Indian manufacturing centres.

    Although Dixon Technologies’ stock is down 1.35% as of now at INR 14,240.00, the company has demonstrated remarkable growth, rising 120.40% so far this year and 170.37% in the last 12 months. Dixon’s decision is a symbol of India’s growing potential in the global IT hardware industry as well as growth for the business. Given Dixon’s track record of meeting goals and the PLI scheme’s support for local production, Dixon Teletech has the potential to revolutionise the industry. This is a significant step in promoting local businesses and lowering dependency on imports.

    About Dixon Technologies

    In India, Dixon Technologies (India) Limited has been at the forefront of the electronic manufacturing services (EMS) market. Dixon was established in 1993 and began producing colour television in 1994. Since then, the company has grown to include a number of electronics sub-sectors.

    The biggest domestic design-focused solutions company in India, Dixon Technologies (India) Limited, manufactures goods for the consumer durables, lighting, and mobile phone industries. Consumer electronics like LED TVs, home appliances like washing machines, lighting items like LED bulbs, tubelights, and downlighters, mobile phones, CCTV & DVRs, wearable technology, and refrigerators are just a few of their varied product offerings. Dixon also offers reverse logistics solutions, such as LED TV panel repair and refurbishment services.

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