Expecting support from the India Semiconductor Mission 2.0, Dixon Technologies is gearing up for a $3 billion display fab in India and is already discussing with a potential partner.
Dixon Technologies is reportedly consulting a global technology firm to establish a $3 billion display fabrication facility in India. With this milestone project, the company seeks to strengthen its position in the electronics components sector.
Additionally, Dixon Technologies has finalised a location for the project in partnership with HKC. Production is expected to begin in the first half of the next fiscal year.
Once established, the proposed facility aims to manufacture displays, a crucial component for mobile devices, IT hardware, and consumer electronics.
The $3 billion capital expenditure required for the display fab is expected to benefit from substantial government support through the Indian Semiconductor Mission (ISM) 2.0.
Furthermore, the company is also negotiating a joint venture with a prominent original design manufacturer (ODM) that supplies notebooks and servers to international brands.
In a moneycontrol report, Atul Lall, Managing Director of Dixon Technologies, highlighted the facility’s potential to localise production, improve supply chain management, and reduce costs.
As the government had previously offered a 50% capital subsidy at the central level and 20% at the state level, Lall also expressed optimism about the revised ISM 2.0 guidelines, which are awaited to proceed further.
Dixon aims for the display fab to enhance its value-addition capabilities and support its current customer base across the mobile, television, and notebook markets. It will also cater to additional industry players. Lall stressed the importance of building a strong component ecosystem to ensure sustained growth in India’s electronics manufacturing sector.
The company is also progressing with its IT hardware manufacturing unit, which is set to start trial production in February 2025, with mass production for HP and Asus beginning soon after. Production for Lenovo and Acer is already underway.
