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.