To locally manufacture precision parts for mobiles, laptops, and IoT devices, Dixon Technologies and Chongqing Yuhai are set to launch their 74:26 joint venture under the ECMS scheme.
Indian electronics manufacturing firm Dixon Technologies has announced a new partnership with Chongqing Yuhai Precision Manufacturing Co Ltd, a Chinese precision components specialist.
The companies plan to set up a joint venture (JV) in India to produce high-quality components used in laptops, mobile phones, automotive electronics, and Internet of Things (IoT) devices.
Dixon revealed in a regulatory filing that it will hold a 74% stake in the JV, with the remaining 26% owned by Chongqing Yuhai. The venture will focus on manufacturing precision mechanical and metal parts to support a broad spectrum of electronic products.
According to a report by the PTI, this collaboration marks a strategic move by Dixon to deepen its supply chain integration and reduce reliance on imports. The JV is expected to play a key role in localising critical components, aligning with ‘Make in India’ initiative and the government’s push for electronics self-reliance.
Vice Chairman and Managing Director of Dixon Technologies, Atul B Lall, expressed enthusiasm about the deal. He noted that the partnership represented an important move towards strengthening backward integration and boosting local manufacturing capabilities.
The new venture also ties into Dixon’s participation in the ₹229.19 billion incentive-based Electronics Components Manufacturing Scheme (ECMS), launched by the government in April, to boost domestic production of key electronic parts.
It remains subject to statutory approvals and the execution of definitive agreements. Dixon has, however, not yet disclosed the financial information of the deal.
