Dixon teams up with Taiwanese firm to make telecom and data centre equipment in India

Dixon Technologies (India) Ltd has entered into a binding term sheet with Taiwan-based Gemtek Technology Co., Ltd. to form a joint venture for manufacturing optical transceivers, BOSA modules and other telecom products in India.

Under the proposed structure, Dixon will hold a 60% stake in the venture through its wholly owned subsidiary Dixon Electroconnect Pvt Ltd, while Gemtek will own the remaining 40%.

The venture will manufacture Small Form-Factor Pluggable (SFP) optical transceivers, Bidirectional Optical Subassembly (BOSA) modules and other telecom products as may be agreed by the partners. Dixon said the partnership marks its entry into the fast-growing data centre, telecom and optical connectivity ecosystem.

Dixon Electroconnect, which is a beneficiary under the government's Electronics Components Manufacturing Scheme (ECMS), will serve as the joint venture vehicle. The transaction remains subject to definitive agreements, customary conditions and regulatory approvals.

The companies said the partnership aims to address growing demand for high-speed networking and data centre infrastructure driven by artificial intelligence, cloud computing, edge computing and next-generation optical communication technologies.

Howard Chen, Chairman of Gemtek Technology Co., Ltd., states "We are pleased to establish this strategic joint venture partnership with Dixon, a manufacturing leader in India. This represents an important step in Gemtek’s global footprint and reinforces our commitment to expanding our optical communication business."

He added, "We aim to build a highly competitive supply chain to address the evolving demands for high-speed network and data center infrastructure driven by cloud and edge computing in the AI era."

Shares of Dixon Technologies (India) Ltd rose nearly 2% to close at ₹11,616 on June 9.

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