Dixon Technologies India Ltd has entered into a joint venture agreement with Taiwan-based Gemtek Technology Co to manufacture optical transceivers and other telecom products in India, targeting rising demand from data centres, artificial intelligence and high-speed networks.
The business will operate through Dixon Electroconnect Pvt Ltd, currently a wholly-owned subsidiary of Dixon Technologies. Once the transaction is completed, Dixon will hold a 60 per cent stake in the joint venture and Gemtek will own the remaining 40 per cent. Neither company will hold a direct equity stake in the other, Dixon said in a regulatory filing.
The proposed venture will manufacture and supply Small Form-Factor Pluggable, or SFP, optical transceivers, Bidirectional Optical Subassemblies, known as BOSA, and other telecom products in India. These components are used in optical connectivity systems that support the movement of data across telecom and networking infrastructure.
Dixon said the partnership would combine its large-scale electronics manufacturing capabilities with Gemtek’s expertise in high-speed optical modules, telecom infrastructure and networking technologies. The companies intend to serve demand linked to artificial intelligence, cloud and edge computing, hyperscale data centres, high-speed networking and next-generation optical communication solutions.
The joint venture represents Dixon’s proposed entry into the data-centre, telecom and optical-connectivity ecosystem. Unlike a conventional contract-manufacturing arrangement, the venture gives the Indian electronics manufacturer a defined operating platform in a specialised segment of network infrastructure, while bringing in a partner with experience in optical modules and telecom technology.
The governance structure will give Dixon majority representation on the joint venture board. The board will have five directors, with Dixon entitled to nominate three, including the chairperson, while Gemtek will nominate two directors.
The announcement comes as the expansion of cloud computing, AI services and hyperscale data centres increases the need for faster and higher-capacity connectivity systems. The filing, however, does not specify the proposed manufacturing capacity, investment size, location of the facility, product volumes or customer contracts for the joint venture.
Dixon said the transaction is expected to be completed by February. The company did not specify the year in the filing details supplied in the announcement. Further information on the facility, capital expenditure and production schedule is therefore expected as the transaction moves towards completion.
