India's Dixon Tech and Taiwan-based Inventec forms JV to make PC products in India

In a strategic push to expand India's electronics manufacturing capabilities, Dixon Technologies has entered into a joint venture with Taiwan-based Inventec Corporation, one of the world's top five original design manufacturers (ODMs) for PCs.

The partnership will operate through Dixon IT Devices Private Limited, in which Dixon will hold a 60% stake and Inventec the remaining 40%.

The venture aims to manufacture notebook PC products, servers, and desktop PC products, including components in India, marking a significant diversification of Dixon's product portfolio. Inventec Corporation, founded in 1975, manufactures notebooks, desktops PC, AIO, servers and handheld devices.

Leadership comments

Announcing the agreement, Atul B. Lall, vice chairman and managing director of Dixon, said, "We are delighted to partner with Inventec, a global leader in IT hardware manufacturing. This joint venture marks a significant milestone for Dixon as we expand our portfolio into high-growth segments of notebooks and servers. With Dixon's operational efficiency and local expertise and Inventec's technological prowess in the IT hardware segment, we shall be striving to produce high-quality products while driving technological innovation and contributing to the development of India's IT infrastructure."

Atul further said the partnership aligns with the Indian government's vision of promoting domestic manufacturing and self-reliance under the 'Make in India' scheme.

Jack Tsai, president of Inventec, echoed the optimism, saying, "Dixon stands as one of India's most prominent electronics manufacturing firms, distinguished by its mature production systems, high degree of automation, and strong alignment with local government policies. This joint venture utilizes Dixon's robust domestic manufacturing capabilities and Inventec's strengths in the capabilities of engineering, supply chain and systems integration."

Nominating directors

The JV agreement gives Dixon the right to nominate three directors and Inventec two on the board of the new entity. It also includes the pre-emptive right of shareholders to participate in future funding rounds.

"Affirmative voting rights in favour of the Company and Inventec. In addition, the JV’ Agreement includes customary and/or commercially agreed conditions with respect to right of first refusal, tag along rights, other share transfer restrictions, appointment of official(s) / key managerial person(s), representation, warranties, termination, dispute resolution etc.," the company added.

The timing of the partnership is critical as global supply chains undergo realignments due to shifting trade policies, including impending U.S. tariffs on imports from China. With Inventec's existing client base—including global PC giants such as HP and Dell—industry watchers expect the joint venture to position India as a strategic hub for IT hardware production, particularly for markets seeking to diversify away from China.

As part of this expansion, Dixon is also reportedly planning a dedicated IT hardware manufacturing facility in addition to its Rs 1,000 crore plant coming up in Chennai.

The new venture is also expected to apply under India's Rs 22,000 crore incentive scheme for electronics components manufacturing, further aligning with the government's 'Make in India' and self-reliance ambitions, ET reported.